Cardiff Services

Private Equity

Overview – Private Equity Investment

Private Equity (PE) refers to investments made by institutional or individual investors into privately held companies or unlisted entities, typically in exchange for equity ownership. These investments are aimed at helping businesses grow, restructure, or expand operations, often before going public or being acquired.

 

Private equity is a powerful capital-raising strategy for startups, SMEs, and mature businesses looking to scale without borrowing from banks. It provides access not just to funds, but also to strategic expertise, governance support, and networking opportunities from experienced investors.

 

At Cardiff Services, we specialize in facilitating Private Equity transactions—from investor onboarding and deal structuring to legal documentation and regulatory compliance under the Companies Act, 2013, FEMA regulations, and SEBI guidelines (if applicable). Our expert legal and financial teams ensure that your PE deals are secure, investor-friendly, and fully compliant with Indian laws.

Features – Private Equity Investment

Private Equity (PE) is a strategic source of funding that provides capital to private companies in exchange for ownership stakes. At Cardiff Services, we help businesses leverage the full potential of PE by offering end-to-end support—from deal structuring to post-investment compliance.

  • Equity-Based Capital Infusion
    Private Equity investors inject capital into a business in return for equity shares, allowing companies to raise funds without taking on debt.
  • Growth-Oriented Investment
    PE investments are typically aimed at scaling operations, product expansion, market entry, or acquisition, making it ideal for high-growth companies.
  • Strategic Involvement
    PE investors often bring in industry expertise, board-level insights, and strategic connections to drive business transformation.
  • Long-Term Investment Horizon
    Unlike venture capitalists or angel investors, PE firms usually invest for the mid-to-long term (3–7 years), aligning with the company’s growth journey.
  • Structured Deal Terms
    Private equity deals are customized, often involving preference shares, shareholder agreements, exit clauses, anti-dilution provisions, etc.
  • Due Diligence & Compliance Focused
    PE investors conduct rigorous financial, legal, and operational due diligence. Cardiff ensures your company is fully prepared and compliant.
  • Exit Opportunities
    Common exit options for PE investors include:

  • Initial Public Offerings (IPO)

  • Strategic sale or acquisition

  • Buy-back by promoters

  • Regulatory Compliant
    PE investments must comply with:

  • Companies Act, 2013

  • FEMA Regulations (if foreign investor)

  • SEBI guidelines (for listed or to-be-listed companies)

  • Valuation Driven
    PE funding involves detailed business valuation using methods like DCF, EBITDA multiples, etc., to determine fair share price.
  • Ideal for Different Growth Stages
    PE is suitable for:

  • Early to mid-stage companies

  • PE-backed management buyouts

  • Mature companies seeking to diversify

With Cardiff Services, you get more than capital support—we manage the legal, financial, and strategic aspects of your Private Equity journey, helping you unlock value while staying compliant.

Documents Required – Private Equity Investment

Private Equity (PE) transactions involve multiple layers of due diligence and regulatory compliance. Having the correct documents ready ensures a smooth and legally sound investment process. At Cardiff Services, we assist businesses in compiling, reviewing, and submitting all necessary documentation to facilitate PE investments seamlessly.

  • Board Resolution for Approval of PE Investment
    Authorizing the company to accept private equity funding and appoint authorized signatories.
  • Shareholders’ Resolution (if applicable)
    Approving the issuance of shares to PE investors, alteration of share capital, or modification of the Articles of Association.
  • Term Sheet / Letter of Intent (LOI)
    Document outlining the preliminary terms and conditions of the PE investment.
  • Share Subscription Agreement (SSA)
    Legal contract detailing the terms of share subscription by the PE investors.
  • Shareholders’ Agreement (SHA)
    Agreement governing the rights, obligations, and exit terms among shareholders, including PE investors.
  • Due Diligence Documents

  • Financial statements (audited)

  • Tax returns

  • Corporate documents (MOA, AOA, Incorporation Certificate)

  • Litigation history and statutory compliance certificates

  • Valuation Report
    Certified valuation report supporting the share price for the PE investment.
  • Filing Forms with Registrar of Companies (RoC)

  • PAS-4 (Offer letter, if applicable)

  • SH-7 (Alteration of Share Capital)

  • PAS-3 (Return of Allotment)

  • MGT-7 and AOC-4 (Annual filings post investment)

  • Foreign Investment Documents (if applicable)

  • FEMA compliance certificates

  • Foreign Inward Remittance Certificate (FIRC)

  • FIPB approval (if required)

  • KYC documents of foreign investors

  • Board Meeting Minutes
    Documenting discussions and approvals related to the PE investment.
  • Legal Opinion (optional)
    Legal due diligence opinion from the company’s advocates or consultants.

With Cardiff Services, all documentation related to Private Equity investments is handled meticulously—reducing risk, accelerating approvals, and ensuring regulatory compliance.

Procedure – Private Equity Investment

Private Equity (PE) investment involves a structured process of capital infusion into a private company in exchange for equity ownership. At Cardiff Services, we provide end-to-end support to ensure that PE transactions comply with legal regulations and meet investor expectations.

Step 1: Initial Discussion & Term Sheet Preparation

  • Discuss investment requirements and business valuation with prospective PE investors

  • Draft a Term Sheet or Letter of Intent (LOI) outlining key terms such as investment amount, valuation, shareholding pattern, and exit options

Step 2: Due Diligence

  • Conduct comprehensive due diligence including financial, legal, and operational reviews

  • Prepare and submit required documents such as audited financial statements, statutory compliances, and corporate records

  • Address queries raised by investors during due diligence

Step 3: Board & Shareholder Approvals

  • Convene a Board Meeting to approve the PE investment and authorize share issuance

  • If required, hold a General Meeting of shareholders to approve changes in share capital, issue of shares, or amendment of the Articles of Association

Step 4: Drafting & Execution of Agreements

  • Prepare and finalize key legal documents:

    • Share Subscription Agreement (SSA)

    • Shareholders’ Agreement (SHA)

    • Other ancillary documents (e.g., escrow agreements, lock-in agreements)

  • Execute the agreements with investors

Step 5: Compliance & Filings with Registrar of Companies (RoC)

  • File necessary forms with RoC, including:

    • PAS-3 (Return of Allotment)

    • SH-7 (Alteration of Share Capital)

    • Other related filings as required

  • Ensure adherence to timelines to avoid penalties

Step 6: Receipt of Investment & Allotment of Shares

  • Receive investment funds from PE investors (domestic or foreign)

  • Allot equity shares as per agreed terms

  • Update Register of Members and issue share certificates or update demat accounts

Step 7: Post-Investment Compliance & Reporting

  • Conduct post-investment statutory compliance such as board meetings, annual filings, and maintenance of records

  • File necessary disclosures with SEBI (if applicable) and comply with FEMA regulations for foreign investments

Step 8: Monitoring & Exit Planning

  • Monitor business performance and investor relations

  • Plan for exit strategies such as IPO, strategic sale, or buyback as per Shareholders’ Agreement

With Cardiff Services, you receive expert guidance throughout the Private Equity investment lifecycle, ensuring seamless execution, regulatory compliance, and value maximization.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms