ABSTRACT
Most private equity is derived from pension funds, insurance companies, banks and high-net-worth individuals, ‘Limited Partners’ – who channel their money into funds to attract such investment set up by private equity firms – and ‘General Partners’. Private equity and venture capital companies measure their success by internal rate of return. Private equity investors need confidence that they can intervene when they deem necessary in business plans, investment, and disposal, any dividends payable, key human resource decisions and even social or environmental goals. Hybrid investment opportunities have been offered to investors, such as private funds utilising a limited liability company or a limited partnership with diversified investments. The Food and Agriculture organisation puts the argument in terms of disparate ownership structures and the resultant opportunities for government and other quasi-public entities to become involved in agribusiness investment. Agribusiness debt itself can be sold on by banks and other debt providers and rated, providing investment opportunities in it.
