What Type of Business is This?

[Elhombredeldiseno]

Hi,
I was recently told about a company looking to invest in a few companies I'm familiar with, but I'm not sure what type of company it would be classed as, so I'll describe it as best I can with the hopes that one of you may know. Thanks in advance.

The company is privately held, controlled by five investors who use their combined personal fortunes (I think they're all related somewhere along the line as three have the last name of Nivean and two have the last name of Ableworth, but it may just be a coincidence) to invest in privately held businesses - the two businesses they're trying to invest in at the minute is an e-commerce jewelry business and the second is a middle-of-the-market jewelry maker (diamond necklaces, bracelets etc.) - pump loads of money into them and then sell them a few years later to a competitor or something similar for a huge profit.

Are they a private equity firm or have I mistaken what a private equity firm is? If not, what are they and is what they do regulated by the FCA or a similar body?

For reference, the five investors are the only people who give the company money to invest (and probably the banks I assume, but can't confirm it) and they DON'T solicit or accept money from outside sources - eg. the general public - in exchange for money at the end/monthly or something similar.

 

[The Byre]

Are they a private equity firm

Yes.

 

[SyfoDiasBuenosDias]

Sounds to me like a private investments company (not regulated in the UK as long as you only invest your own money).

On an unrelated note, why are they interested in the jewellery sector? Most private equity firms/private investments companies tend to focus on more broad investments, such as the retail sector as a whole whilst yours appears to only focus on jewellery. Assuming you can find out, could you share some of the other companies they’ve got holdings in - at the very least it may help us ascertain what types of things they buy to better help us tell you what it is.

Just wanting to make sure, but have they told you that they don’t invest in the stock market or is this an assumption on your part?

 

[Ozzy]

Choosing my words carefully, it looks like I got the exact same message wanting to invest into BDG. Then a few weeks later I got the same message again wanting to invest into a special needs school I’m a governor of…both via LinkedIn. Not sure they are doing much research into the companies they want to invest into, so do your homework if you proceed to dialog.

 

[OddBall121104]

Hi, I’ve got a similar kind of thing.

I’ve recently become aware of a real estate business deal (buying some land with planning permission already on it and then building houses on them to sell on) that’s currently being advertised by a “business broker”. Ringing them up, I’m told that I’m the client (I though they were selling the deal on behalf of a client) and that in exchange for them sorting the deal for me (eg. Helping me negotiate for the land, using their construction company contacts to “get me a better deal as they bring this company millions of pounds worth of business each year” and regularly meeting with the builders to see what the issues and/or holdups are) I have to pay a fee of roughly 5% of the deal - it’s a predetermined number that I’m withholding so I don’t break NDA.

Are these people really business brokers, because I thought this was more akin to what investment banks did? Or am I indeed confused on what an investment bank actually does/is it more of a points system (eg. More of their business is traditional business broker and this is merely a “side business” if you will)?