Private Equity

(redirected from Private Equity Funds)
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Related to Private Equity Funds: Hedge funds

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 ?
However, Pakistan-based private equity funds are far away from playing their due role of supporting and growing companies in different sectors of the national economy due to a tight regulatory regime.
It was blamed on strict regulations of State Bank of Pakistan (SBP) and SECP which prevent local and foreign investors from pooling into private equity funds, they said.
Alternative investment firm Abu Dhabi Capital Management (ADCM) has won the award for "Best Private Equity Fund" at the Banker Middle East Product Awards 2014 in recognition of the performance of its Secondary Private Equity Fund over the last year.
At a forum on cross-Taiwan Strait M&A and private equity fund, Chen remarked that the Financial Supervisory Commission (FSC) has embraced the aforementioned criteria in screening applications by private equity funds for investing in Taiwan, stressing that private equity funds must change their traditional "vulture" role along with change in the global industrial environment.
The annual meeting held by Global aims to create a close relationship between investors and the company managers that Global's private equity funds invest in.
As the private equity industry matures, it needs greater consistency in the reported results and valuation approaches used by managers of, and investors in, private equity funds.
Survey responses were obtained by Ernst & Young's real estate private equity funds services group from 48 fund general partners and supplemented by information available and verifiable publicly.
d) How do the restrictions on routine management and operation apply to private equity funds and investments held through a private equity fund?
Price estimates that since January last year, pension funds have invested approximately $400 million to $500 million into private equity funds controlled primarily by minorities.
Taxation of the Private Equity Fund and the Investors
The fund acquired secondary private equity funds in the MENA, US and Europe regions in the past three months, and is currently 40 per cent invested.
Ulrich Grabenwarter is head of division for Venture Capital Operations at the European Investment Fund (EIF), and responsible for a portfolio of nearly 100 private equity funds and euro1 billion under management.

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