Private equity firms financial definition of Private equity firms. Private equity firms finance term by the Free Online Dictionary.

Private Equity

Equity shares that are not traded on a public exchange.

Private Equity

1. Ownership in a corporation that is not publicly-traded. That is, private equity involves investing in privately held companies. Most of the time, private equity investors are institutional investors and high net-worth individuals who have a large amount of capital to commit to these investments. Private equity is usually held for a long period of time, and trading in it is useful when a company is in danger of bankruptcy, because it provides access to a great deal of capital very quickly.

2. A company that trades in private equity. Often, private equity firms band together and buy out publicly-traded companies, making them privately held.

Private equity. Private equity is an umbrella term for large amounts of money raised directly from accredited individuals and institutions and pooled in a fund that invests in a range of business ventures.

The attraction is the potential for substantial long-term gains. The fund is generally set up as a limited partnership, with a private equity firm as the general partner and the investors as limited partners.

Private equity firms typically charge substantial fees for participating in the partnership and tend to specialize in a particular type of investment.

For example, venture capital firms may purchase private companies, fuel their growth, and either sell them to other private investors or take them public. Corporate buyout firms buy troubled public firms, take them private, restructure them, and either sell them privately or take them public again.

Private Equity

What Does Private Equity Mean?

Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that invest directly in private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from very wealthy individuals and institutional investors and is used to fund new technologies, expand working capital, make acquisitions, or strengthen a company's balance sheet. The majority of private equity consists of institutional investors and accredited investors (rich people) who commit large sums of money for long periods. Private equity investments are often long-term in cases of company turnarounds or a liquidity event such as an IPO or a sale to a public company.

Investopedia explains Private Equity

The size of the private equity market has grown steadily since the 1970s. Private equity firms sometimes pool their funds to take very large public companies private. Private equity deals can rise into the range of billions of dollars. Many private equity firms conduct what are known as leveraged buyouts (LBOs), in which large amounts of debt are issued to fund a large purchase. Private equity firms then try to improve the company's financials in the hopes of reselling the company to another firm or cashing out by taking the company public in an IPO.

Related Terms:
• Equity
• Leveraged Buyout—LBO
• Mezzanine Financing
• Private Placement
• Shareholders' Equity

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Buyout firm Club Deal Crossover Fund four quadrants of the real estate capital markets Henry Kravis Investment Bank IPO Lock-Up Period Participating Preferred Stock Payment In-Kind Payment-In-Kind Payment-In-Kind Bond Payment-in-Kind Security PIK Private Equity Firm Tier 1 Capital	00 Paperback HG4751 The 13th edition of this massive directory of venture capital and private equity firms is designed for entrepreneurs, business owners and investors who need detailed corporate profiles, contact information, geographic preferences, background information and investment criteria. The directory of venture capital & private equity firms; domestic & ... by Reference & Research Book News CVC Capital Partners is believed to be among several private equity firms circling the Skelmersdale-based company, which has 203 outlets. Private equity firms tipped to bid for pounds 15bn clothing retailer by Daily Post (Liverpool, England) This is the crunch moment for which private equity firms have been waiting. U.S. editorial excerpts by Japan Weekly Monitor	Prior Income Prior Insurance Prior Lien prior period adjustment Prior Preferred Prior Preferred Stock Prior-Lien Bond Prior-Preferred Stock Prioriteitsaandeel priority Priority Foreign Country Priority List Priority of Lien Priority of Tax Lien Prisoner's Dilemma privacy law Private Accountant Private Activity Bond Private Bank Private Banker Private Banking Private Branding private covenant Private Equity Private Equity Firm Private equity firms Private Export Funding Corporation Private Investment Fund Private Investment In Public Equities Private Investment in Public Equity Private Law private letter ruling Private Limited Partnership Private Market Value private mortgage insurance private offering Private Placement Private Placement Memorandum Private Purpose Municipal Bond private REIT private sector Private Unrequited Transfer Private Unrequited Transfers Private Voluntary Organization Private-Label Pass-Through Private-Label Pass-Throughs Private-Purpose Bond Privately Held Company Privatizacao Privatization Privileged Subscription	Private economy Private economy Private economy Private economy Private education Private education Private Education Student Financial Assistance Private Educational Institution Private Educational Institutions in Pakistan Private Electronic Network Private Employment Agency Private Energy Market Fund Private Energy Partners Private English Language Schools Association private enterprise private enterprise private enterprise private enterprise Private Enterprise Foundation Private enterprise number Private enterprise number Private equity Private equity Private Equity Alliance of Minneapolis Private Equity and Venture Capital Private Equity Bridge Invest Ltd Private Equity Conference Private Equity Exchange Fund Private Equity Finance Institute Private equity firm Private equity firms Private equity fund Private equity fund Private Equity Fund Services Private Equity Funds Private equity group Private Equity House, Ltd. Private Equity Industry Guidelines Group Private Equity Intelligence Private Equity International Private Equity Investment Advisory Committee Private equity investments Private equity investors Private Equity Leadership Network Private Equity Management Group, Inc. Private Equity Merchant Banking Private Equity Mergers & Acquisitions Private Equity Performance Index Private Equity Real Estate Private Essential Access Community Hospitals Private Exchange Private Exchange Private Export Funding Companies Private Export Funding Company Private Export Funding Corporation Private Export Funding Corporation Private Export Funding Corporations Private Export Processing Zone

Mentioned in

References in periodicals archive

Financial browser

Full browser

Buyout firm
Club Deal
Crossover Fund
four quadrants of the real estate capital markets
Henry Kravis
Investment Bank
IPO
Lock-Up Period
Participating Preferred Stock
Payment In-Kind
Payment-In-Kind
Payment-In-Kind Bond
Payment-in-Kind Security
PIK
Private Equity Firm
Tier 1 Capital

00 Paperback HG4751 The 13th edition of this massive directory of venture capital and private equity firms is designed for entrepreneurs, business owners and investors who need detailed corporate profiles, contact information, geographic preferences, background information and investment criteria.

The directory of venture capital & private equity firms; domestic & ... by Reference & Research Book News

CVC Capital Partners is believed to be among several private equity firms circling the Skelmersdale-based company, which has 203 outlets.

Private equity firms tipped to bid for pounds 15bn clothing retailer by Daily Post (Liverpool, England)

This is the crunch moment for which private equity firms have been waiting.

U.S. editorial excerpts by Japan Weekly Monitor

Prior Income

Prior Insurance

Prior Lien

prior period adjustment

Prior Preferred

Prior Preferred Stock

Prior-Lien Bond