Private Equity

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Related to Private equity fund: Private equity firm, Venture capital fund

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.

References in periodicals archive ?
Private equity fundraising is booming and private equity CFOs want to hire one firm that they trust to handle all of their accounting and operations requirements," said Robert Caporale, head of the new JPMorgan Private Equity Fund Services.
5 billion (approximately $3 billion) to invest in private equity funds that are leaders in their field.
d) How do the restrictions on routine management and operation apply to private equity funds and investments held through a private equity fund?
Price estimates that since January last year, pension funds have invested approximately $400 million to $500 million into private equity funds controlled primarily by minorities.
History has proven that private equity funds that originate in times of recession have superior returns.
The vast majority of capital for Audax Private Equity Fund III comes from existing investors in prior Audax equity and mezzanine funds.
The firms will form a strategic partnership to develop private equity fund of funds products for institutional and high net worth investors.
NYSE: JEF), today announced that its UK affiliate, Helix Associates Limited, a leading private equity fund placement agent, has expanded its capabilities with the hiring of Clive Norton as a Managing Director in the firm's London office.
32 billion private equity fund dedicated to the energy industry.
In that capacity he supported Goldman Sachs' Investment Management Division, focusing on Goldmans' direct hedge funds, private equity fund of funds and fiduciary businesses.

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