Private equity
Private equity is a type of investment where an investment firm buys shares of a business that is not listed on a stock exchange, meaning that it does not offer its shares to the general public.[1] A private equity firm is a company makes such investments.
Investors, often from institutions like funds, give a company money, and in turn buy part of that company. The most common types of private equity are: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital.
In leveraged buyouts, investors buy the majority control of a mature company. In venture capital or growth capital investment, investors give money to start-up companies.
References
- ↑
Private Equity Media
- Leveraged Buyout Diagram.png
Diagram of the basic structure of a generic leveraged buyout transaction
- Private Equity Fund Diagram.png
Diagram of the structure of a generic private-equity fund
Diagram of a simple secondary market transfer of a limited-partnership fund interest. The buyer exchanges a single cash payment to the seller for both the investments in the fund plus any unfunded commitments to the fund.
- Secondary Diagram (Continuation Fund).png
Diagram of a GP-Led secondary market transfer of private equity companies through a Continuation Fund.
"Private Equity Explained With Examples and Ways to Invest". Investopedia. Retrieved 2025-02-21.