HULT Private Capital | Architect Magazine

HULT Private Capital is a leading investment source boutique providing high net worth and sophisticated investors a plethora of well researched and time tested investments. Established in 2008 with over 4 office HULT Private Capital prides itself as being the number one go to investment house with a fantastic track record to show. HULT works along side the biggest and best names in finance equity and investment to bring the perfect blend of investment opportunities.

To investors that qualify we can introduce secure fixed investments. This is an investment direct that is balanced, classed as safe and bank secured meaning you are protected by the banks own client security as their customer. These fixed deposit investments are available from 3 to 5 years and perform with balance and stability. The investment will remain as a holding until completion, at which point funds would be returned to clients’ who may then wish to reinvest or choose to diversify into other investments .

HULT Private Capital Sees Brief Oil Price Hikes

HULT Private Capital reported that on Thursday, the International Energy Agency (IEA) raised its forecast for oil price demand for the remainder of 2022. The Paris-based agency, in its monthly oil report, has modified its 2022 demand outlook prediction by 380,000 barrels per day (BPD). This upgrade is on top of the IEA’s expectation for coal demand to reach an all-time high in 2022. HULT Private Capital saw a resulting increase in oil prices of over 1% on Thursday, and this growth forecast is combined with the soaring gas prices seen that have driven some consumers to switch to oil.

HULT Private Capital said that brent crude futures initially gained 2.7% o this IEA news trading, at just over $100 a barrel; however, as of August 16th, brent futures have fallen back to $92/barrel. At the same time, the U.S. West Texas Intermediate crude futures jumped 3.2%, reaching $94.87 per barrel. They, too, have since fallen and are floating in the lower $86/barrel range.

According to HULT Private Capital, energy prices have been high through the summer due to the continued supply chain issues le over from the Covid-19 pandemic and moreover the ongoing conflict in Ukraine since the invasion by Russia.

HULT Private Capital also stated that the IEA’s growth expectation was in contrast to OPEC, and that on the same day as the IEA’s report, it revised its own forecast down. OPEC sees the 2022 oil demand rise by 3.1 million; however, this is a 3.2% decrease amounting to 260,000 BPD fewer than their previous forecast.

HULT Private Capital Watching Precious Metals

Award-winning investment boutique HULT Private Captial has been closely monitoring the precious metals markets.

In the past 30 days, both silver and gold prices have been on an uptick.

After reaching a peak on the 12th with gold over $1800 per ounce and silver above $20.80, both metals’ prices have fallen back. The choppy trading that preceded these highs was due to the predictions by traders that the US Federal Reserve would not continue its aggressive rate hikes after some relatively benign inflation readings were released on the 10th. Inflation is s ll a concern in the UK, where the most recent numbers show that they have seen a price rise of 10% over last year.

According to HULT Private Capital’s Amrit Singh HULT believes that the Fed’s two previous rate hikes of 0.75%, combined with the lessening fears of energy issues that started with the Ukraine invasion, are leading to a calming effect.

Spot gold has fallen back to $1763 per ounce, well below its high of around $2050 per ounce seen in March. The continuous gold futures price is at $1776 a 0.7% premium, down slightly from a 0.8% premium a week ago.

HULT Private Capital’s Singh said that the US consumer prices did not rise in July, mainly due to a significant drop in gasoline prices. The US inflation benchmark Consumer Price Index (CPI) was flat at 0% in July, a sign of relief after it had advanced 1.3% in June.

According to HULT Private Capital’s Singh, “Gold and silver both saw a knee-jerk reaction, the tamer in a on data led investors to believe that the Fed is going to be less aggressive this month. The price dipped then rose to the recent high but then has fallen back. Metal’s investors are not certain if the Fed will be ‘tame” or ‘tamer.’ The subsequent fall to today’s levels makes us believe they will be tame.”

Singh continued, “The technical posture of the near-term precious metals markets has turned bullish recently; if inflation starts to show its head again as it has in the UK, or signs of recession become clearer, the next price objective for Gold bulls is first $1850 and then $1900. Gold performs well if interest rates are low, so the FED’s next moves will be key.”

HULT Private Capital will be watching the Fed’s coming comments looking for hints about its potential rate hike path.

The dollar index has also been choppy, falling over 1% and then moving back up. Any fall will then bolster the appeal of metals by overseas buyers looking for additional arbitrage opportunities.

Concurrently, US Treasury yields have risen over the past month except for the ten years.

The Goldman Sachs price points for gold are in line with HULT Private Capital’s forecasts. Goldman currently has three six and 12-month price forecasts at $1850 for three months, and 1950 for both six months and one year. HULT Private Capital stated that they see gold in this range being bound by offsetting growth and tightening factors.

Rounding out the metals markets, platinum is down below $925 per ounce, and Palladium is below $2140 per ounce.

Is private equity an option for startups? 

Private equity is associated with growth capital and not startup capital. It is a type of investment typically reserved for companies that have grown in size and are looking for an exit strategy or growth that isn’t possible through traditional financing options. Startups that are just in the initial phase with an idea are too early for private equity.

Private equity firms like Hult Capital typically look for later stage companies that are in need of big money or businesses that have some assets to leverage.  PE is an interesting business funding option if you are a business with existing assets or revenue. It is also valuable for businesses with a strong operational profile. So, if you are a small business or a startup, you have little use of PE.

How private equity works?

Money is pooled in from LPs (Limited Partners) by private equity firms. LPs tend to be insurance companies, pension funds, endowments and high net worth individuals. They usually invest in a private equity fund for employing a management group and seeking out high yield investments for them. PE firms bet less on speculative growth. They are more focused on demonstrated opportunities and growth.

Should you work with private investors?

The process of raising capital can be quite demoralising and at times, it can end with no payout. So, it is very important to invest some time in determining whether you really need to raise capital for your business.

Things PE firms consider before investment

A lot of research and deliberation goes into investments. PE firms don’t invest in a company blindly because the investment deals are very high in value. For instance, they look for a good management team in the company they want to invest in. They want the team to be agile and be able to execute changes when necessary.

PE firms look for growth potential before investment along with security. There are several factors that indicate the potential for growth such as, past successes, stability of customer base and openness of leadership.

Private equity firms opt for companies that communicate their research ad development plan openly. They check if the plan compares to other companies on the market and if it has the potential to compete.

Security is also an important factor that is considered by private equity firms such as Hult Private Capital. Since PE firms are not like banks, it is difficult for them to know their whole return on investment.

How private equity benefits?

Private equity funding is quite flexible. The deals are negotiated in a way that fits the situation. A PE firm invests in a company with the intention to sell the business in the medium term. In such a scenario, it is important for the company to be well-invested so that it looks attractive to the acquirer. Usually, a business backed by private equity is resourced for the next phase of expansion, making it attractive for a wide range of buyers.  

Benefits of Private Equity for Businesses

Private equity has a significant role to play in the growth of a company or a startup. Compared to conventional financial options such as, a bank loan or listing on public markets, private equity allows access to liquidity. If you are a business owner, utilising private equity is an important step you can take towards building your business.

Here are a few ways to get started:

1. There is no harm in focusing more on strategies for growing and scaling your business but don’t delay bringing on board a private equity investor.  Don’t view it as a potential exit path for a time when you are ready to leave or just as a way of monetizing your business. Change this limiting mindset and start viewing private equity as a tool for securing large amounts of capital and expertise. When you start working with a PE firm like Hult Private Capital you will see what an asset private equity can be in case of big payouts and rapid growth.

2. According to the industry experts, partnering with private equity firms is always a good decision. It can never be overstated. PE investors know what they are doing and they are quite good at it. When good PE investors work with creative business owners, nothing can stop the business from growing. PE can have a positive long-term effect for your business, helping you level up your organization. PE partnering will bring you liquidity, allowing you to diversify the asset base. It will also give you access to resources for scaling up your business.

3. With private equity, business owners can sell their business not just once but multiple times. PE will also provide you access to more components for a better growth strategy. With the right private equity investors, you will get to see process improvement and margin improvement. The investors will also utilize acquisitions and mergers by buying other similar companies and combining them so that the process of scaling gets quicker.

It is important to understand the benefits private equity can bring to your business. You need to stop thinking of PE as just a one-time exit potential. Make private equity a part of your growth strategy and see significant changes.

If you bring private equity in early, it will become easier to make use of their capital and resources for your business. You will be able to enjoy subsequent paydays and far higher return.

Finding the right private equity firm is very important if you wish to reap maximum benefits from PE. There are several firms like Hult Capital that are helping companies accelerate growth. Start finding the right firm by borrowing down PE firms that have expertise in your industry. Choose one that has invested in companies that are similar to your business. You can find similarities by reviewing the past and current investments of the PE firm. Also, make sure the firm has a group of industry experts who can ensure profitability for your business.

Private Equity – Hiring the Right PE Partner

Did you know, private equity investments didn’t gain prominence until the 1980s. Instead of the public market, many struggling companies raised funds from private sources. So, if you are planning to choose a private equity partner for your business, you need to be extra careful. A lot of due diligence will be needed to separate the best from the rest. Once you have a reputed partner on board, new doors will open for your company, helping it grow like never before.

  • The first and most important thing is to understand what you need from an investment. Even before you determine what a private equity partner can offer your business, it is important to know the amount and type of funding your business will require. Start by understanding your current growth stage and how much funding will be needed to get to some important business markers.
  • Narrow down few reputed firms and look into what they can offer you in terms of advice. It is important to remember that you are not just looking for money but also for alignment. For instance, firms like Hult Capital will not only offer you money but also offer you industry-specific guidance.
  • It is important to evaluate the track record of each firm you have narrowed down. From size and stability to capital resources and track record, there are a number of factors to consider.
  • Try and understand what it would be like to work with a certain firm and how it will help you grow. Look for a PE partner that will focus on the bigger picture and not just on the operational details. Select a firm that will provide capital, contacts as well as advice.
  • Look for a reliable firm like Hult Private Capital that has a good reputation in the market. Only a stable firm can help you raise follow-up capital, if needed. The firm you choose should have the expertise in picking dynamic companies to back. In a nutshell, choose a firm that has similar objectives and a proven record of success.
  • When you are evaluating a potential PE partner, it is recommended to have a word with past investors in companies where the firm has invested. By looking at the current and past investments, you can learn more about the PE firm.

Questions to Ask

There are quite a few questions that you can ask when choosing a private equity partner. For instance, what is the size of the fund on offer, what is your target return strategy, profile and so on.

A private equity firm provides profit to investors within a certain timeframe. This time frame ranges between 4 and 7 years. You may be drawn to the overall branding of a PE firm but things will fall into place only when you start working closely with one or two partners of the PE firm once the deal closes.

Make sure you are taking all the above-mentioned factors into consideration when making a choice.

Private Equity Setting a Remarkable Standard

There is a significant rise in the demand for private equity funds. The inflow from existing as well as new institutional investors is also increasing due to high returns and low volatility that private equity funds offer.

Due to the pandemic, every business sector suffered losses. Even private equity investments were low in the first two quarters of 2020. This decline was largely caused by the closure of existing businesses during the lockdown period. The decline was also driven by travel restrictions that governments across the world had posed.

Even though private equity funding reduced by 24% for 2020, the picture changed very soon and the PE sector started showing great resilience. The last two quarters of 2020 witnessed an upwards trend in the demand for PE funding. Even during the coronavirus crisis, the PE sector made a strong comeback, fulfilling the need of private financing for private businesses.

Considering the current market scenario, the need for private equity is growing manifolds because more and more businesses are struggling due to the global crisis. Businesses are in need of reliable private capital companies such as Hult Private Capital that have an expert team examining the key trends in the private equity sector.

Future Seems Promising:

With venture capital and private equity, unquoted businesses now have an alternative source of finance.  Mainly the SMEs and private sector is relying heavily on funding from private equity. It is also offering great investment returns to investors.

Even though the pandemic is posing challenges, it seems that the private equity sector is all set to help investors as well as businesses. For private businesses, there is a gap between the needs and availability of capital financing. But with the help of PE sector, this gap can be bridged and the economy can be rebuilt.

Upward trends in the private equity sector are likely to continue in 2022 and beyond. So, if you wish to take your business to the next level, hiring a private capital company like Hult Capital can be a good move. Such companies have a team of professionals who will work in co-ordination with you to find the best investments as per your business needs. They will also present you funds that will help your business achieve good returns. Just make sure that you are doing some good research before choosing a private capital company to partner with.  

Choosing the Right Private Equity Partner

Want your business to achieve top-tier performance? Make sure you have the right private equity firm to invest with. In an industry where return dispersion is huge, choosing the right PE partner is crucial. Only the right firm can help you achieve your financial and strategic goals.

You first need to determine what part of business cycle your company is in. Some PE firms specialise in the early stages and growth of a business whereas some want to invest only in mature companies. So first identify how you want your company to grow and then start looking for a PE firm best suited for your needs.

Here are top 5 key factors that you must consider:

  1. The first step is to narrow down private equity firms that have expertise in your industry. It is always best to choose one that has invested in companies similar to yours. Review the past and current investments done by the PE firm to find similarities.
  • Look for a reliable PE firm like Hult Private Capital that has an established group of industry experts to drive growth and profitability for your business. A reputed firm will not only give you a fresh viewpoint but also bring in new technology and processes to embrace the vision of your business.
  • Reading reviews on the internet can also help you make an informed decision. There are several forums online where you can find Hult Private Capital reviews or reviews of other PE firms.
  • Another method of evaluating a potential PE partner is to connect with companies in which the PE firm has invested. Since PE firms like Hult Capital publish their investments, look closely to understand in what capacity they have invested and in which company.
  • Make sure you consider the investment horizon of the PE firm, their fees and work process before making a choice. Start the search with a clear idea of what you want, the people you need on board and the type and size of investment you are aiming at.