Private Equity

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Related to Private Equity: venture capital

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 ?
The PEIGG PE Valuation Guidelines and the International Private Equity and Venture Capital Valuation Guidelines (currently undergoing harmonization) provide the PE industry with best practices in determining fair value in accordance with GAAP.
11, 2001, terrorist attacks, private equity invested billions into the Bermuda market to finance new property/casualty efforts.
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.
A financial holding company may seek Board approval to own, control or hold an interest in or held through a private equity fund for a period longer than the duration of the fund in accordance with section 225.
To win the private equity game, you first need to know the rules.
For starters, the pool of available equity capital has grown substantially in recent years to roughly $100 billion, according to the Federal Reserve, as pension funds and banks such as Chemical Bank, Bank of Boston, and Bank America now are joining the traditional ranks of insurance companies, "buy-out" firms, and wealthy individuals who use private equity investments to reap higher returns.
The emergence of the limited partnership as the dominant form of intermediary is a result of the extreme information asymmetries and potential incentive problems that arise in the private equity market.
a subsidiary, is one of a growing handful of African-American-run private equity funds.
Venture capital, provided at the formation of a company or during a period of rapid growth, is the riskiest form of private equity, due to the high failure rates of new companies.
Adveq, together with Kyoto University, one of the leading universities in Japan, analyzed the private equity investment behavior and future intentions of Japanese company pension funds, industry association pension funds, insurance companies, banks, investment advisory companies, securities companies and other financial service providers.

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