Private Equity Firm
Also found in: Dictionary, Wikipedia.
Related to Private Equity Firm: Private equity fund
Private Equity Firm
Firms that use their own capital or capital raised from investors to take companies private with the aim of running them better and later taking them public or selling them at a profit.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
2. A company that trades in private equity. Often, private equity firms band together and buy out publicly-traded companies, making them privately held.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved