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 last great bull market for private equity houses arrived unannounced at the beginning of the century and lasted until the great financial crisis almost swallowed the banks that had been so willing to extend the credit which fuelled many high-profile acquisitions.
Today, regular Joe and Jane investors want the potential to share in the impressive returns that private equity has historically provided to endowments, foundations, pension funds and other institutional investors.
Private equity investment in Africa can serve as a catalyst for development on the continent in a way that fosters the achievement of targeted and specified developmental goals, the report concludes.
Private equity - or PE as it is usually known - is very different.
I am far more interested in raising the question of how the entry of such players into the private equity arena in a big way may be reshaping the market-place.
Kelly also helps readers understand some trends within the industry, including how private equity is becoming better known as more large private equity firms go public; how the nature of private equity firms is growing more complex as they begin to broaden their scope in terms of the companies they acquire; and private equity's influence on the general populace.
And private equity is where most of the opportunities to go plural lie.
So there were still 160 private equity exits Europe-wide, according to statistics provided courtesy of the European Private Equity Association, in Q3 2011, the most recent figure available--just to strategic investors.
The private equity returns investors realize typically embody a number of such "ifs." From 2000 through 2010, the public markets returned 7.7% annually for large cap stocks (the S&P 500) and 6.6% for the broad market (the Russell 3000).
"Being ranked the number one private equity group in emerging markets worldwide validates our long-term focus on identifying companies that meet our strict investment criteria, unlocking their growth potential and, ultimately, delivering significant value for our investors," said Mounir Husseini, Senior Partner and Head of Coverage at Abraaj Capital.
Written primarily for investment professionals already familiar with private equity, this work by Cornelius (head of economic and strategic resource at the private equity investment firm AlpInvest Partners) puts the focus on cross-border investments in globally and regionally integrated private equity markets.
Plan sponsors are increasingly investing in "alternative" assets such as hedge funds and private equity. This has raised concerns, given that these two types of investments have qualified for exemptions from some federal regulations and could present more risk to retirement assets than traditional investments.

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