Private Equity

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Related to Private-equity: private-equity firm

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 ?
Two powerhouses of the private-equity industry will be featured in keynote interviews at the premier networking event for investment professionals: the annual Limited Partners Summit, to held here on Nov.
Hellman & Friedman LLC is a premier, San Francisco-based private-equity firm that has raised and managed more than $8 billion since its inception in 1984.
Doerr's talk, plus a post-conference workshop that will answer key questions about the risks and rewards of including China in your private-equity strategy.
The Summit is a must-attend event for limited partners who want to identify new ways to manage their GP relationships and maximize returns in 2005; general partners who want to raise new funds and improve existing LP relations; and service providers who want to make contact with more than 400 leading private-equity professionals.
and prolific and successful investor Roger McNamee of Elevation Partners--both legendary figures in the private-equity industry--will highlight the Dow Jones Private Equity Analyst Conference 2004 on Sept.
McNamee will be featured at a candid and informative private-equity interview session.
The Standard") announced today that it has raised $30 million in first-round private-equity financing.