Hands-off investor

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Hands-off investor

An investor who has a large stake in a company, but does not wish to play an active role in the management of the corporation.

Hands-Off Investor

A shareholder or other investor who has enough equity to affect the company's management, but elects not to do so. A hand-off investor usually has an exceptionally large stake in the company, but chooses to accept his/her profits and ignore how the company is being run. A hands-off investor can be a show of confidence in the current management; in any case it allows the management a great deal of autonomy. The disadvantage, from the management's perspective, is the possibility that a hands-off investor will become dissatisfied and demand a greater role in the company. See also: Silent partner.

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