Asset management companies and their role in venture capital

1. Asset management companies and their role in venture capital For every entrepreneur, it is their dream to expand their business horizons. For most, it is about how broadly are the spread out across industries. Every business comes with a certain risk. It is set up with the help of some resources and capital. As the business does well for itself, it is natural for the businessman to want to expand their horizon. But this expansion is possible only when they have the right combination of resources and also the right amount of capital. This capital is known as the venture capital. This capital is used when the business owner wishes to either expand his or her business or invest in setting up business in a completely different field. Hence, this capital comes handy in cases where there are high amounts of risk involved in doing so. While a business is growing and earning profits, it is typical for the business to hire and seek assistance of an asset management company. An asset management company invests their client’s money, thoughtfully, in different assets across the financial world. They are famously known as money managers as well. There are different types of asset management companies, the ones that deal in hedge funds, mutual funds, index funds, exchange trade funds, equity funds and so on. The different types of clients that they deal with are from private sector, retail investors, HNIs, and of course, the public sectors. It is with the help of these asset management companies that business raise venture capital and also get guidance in credit management, which we shall discuss further in the article. The money invested in business expansion or money that is invested in other firm to gain hold of it, is not of a long-term nature. The whole idea of investing this capital in any other company’s growth is that you support its infrastructure and development till it reaches a good fruitful size and becomes credible, after which, that part your own can be sold to some corporation and any equity markets (public) which would provide liquidity. To put it in simple terms, business owners that deal in venture capital, put www.avendus.com

2. stake on a budding entrepreneur’s ideas, provides sufficient nourishment in terms of finance and development for a fixed amount of time and then, with the help of an investment banking company, makes and exit. We now come to another very important aspect of a business, credit management. Credit management is that branch of business that involves giving credit to other business and recovering it on the said due date. It also refers to setting down the credit policy of the said organization. This technique if most prevalently used in order to manage bad debts and run the business in a more efficient manner. The asset management company helps you take care of the credit management, one that the other businesses may owe you and one that your business may owe others. The credit period, time duration to repay the debt credit spans from two weeks, to 60 days and even 90 days in certain cases. Having a good credit score increases the liability of the company in the market. www.avendus.com