Find out more about Global Commitment in Private Equity

Global commitment is a term used to describe a specific type of private equity investment (/en/blog/quest-ce-que-le-private-equity-pe). It is characterized by an investment in a company - or organization - for longer periods than traditional investments. The overall commitment is often established when the investor is more involved in the company's management. This type of financing is designed for companies that need greater and more lasting financial support for their growth and development.

Global commitment is also a form of investment in which an investor is committed for a longer period, typically 5 to 10 years. The main aim of this commitment is to support a company's long-term development. Investors usually take a majority stake, and benefit from the company's long-term returns.

Another important aspect of the global commitment is to provide strategic advice and knowledge to the company to help improve its performance. Investors will also be able to get involved in the day-to-day operations of the company, helping to hire staff, develop business strategies, improve governance and implement more effective management practices.

Finally, most investors demand a high rate of return on investment, which means that companies must be highly profitable and work to achieve the targets and financial performance set by investors. Global engagement is therefore a way for companies to find long-term sources of financing and benefit from the advice and knowledge they need to grow.