Our private equity investments will generally be made by a private equity firm, a venture capital firm or an angel investor. Each of these categories of investors has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new product development, or restructuring of the company’s operations, management, or ownership. Most of our investment funders are organized as limited partnerships that are not publicly traded and whose investors are typically large institutional investors, university endowments, or wealthy individuals. Private equity firms are known for their extensive use of debt financing to lend to companies, which they often help to restructure higher value. Debt financing reduces corporate tax burdens and is one of the principal ways in which private equity firms make business more profitable for investors. Because innovations tend to be produced by outsiders and founders in startups, rather than existing organizations, private equity target startups to create value by overcoming agency costs and better aligning the incentives of corporate managers with those of their shareholders.