Private Equity

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Related to Private equity fund: Private equity firm, Venture capital fund

Private Equity

Equity shares that are not traded on a public exchange.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
EeAoAt TVM Capital Healthcare Partners, we believe the DIFC is an excellent domicile for our future funds, and we applaud the QIF initiative which brings cost, compliance and approval speed for classical private equity funds targeting qualified investors in line with international best practices.
The disclosure requirements are by no means the most intrusive element of the AIFMD relating to private equity fund managers.
Data can also be filtered by geography, industry, individual team member, with customizable charts and configurable tools designed to illustrate aspects of private equity fund performance.
Private equity funds increased their investments in Latin America by 53 percent last year, grabbing a 21 percent share of emerging market private equity.
Master Private Equity Fund prepared a written offering memorandum setting out the nature and risks of the investment, which Berthel Fisher was required to provide to each investor, Master's statement said.
“Our global investment team conducts extensive due diligence on numerous private equity fund and co-investment opportunities, enabling us to select the most attractive private equity investments.”
Makki, managing director and president of the Fincorp told Times of Oman, on the sidelines of announcing the official launch of Fincorp Oman Private Equity Fund here yesterday.
Oman Investment & Finance Co (OIFC) on Sunday said it decided to withdraw from investing in Dubai investment bank Rasmala's private equity fund after issues emerged related to the establishment of the fund.
The ADCM Secondary Private Equity Fund had its first closing of $30 million earlier this month.
China-based asset management company, Guosen Securities, has announced that it has launched a private equity fund.
27, 2010 (CENS)--China Development Financial Holding has decided to form a renminbi-denominated private equity fund, as high as 6 billion yuan (US$906 million) in scale, which, if materialized, will become the first case for a Taiwanese financial firm to enter the Chinese market in the form of a private equity-fund management company.
Subsection 619(c)(1) requires the federal banking agencies to engage in a joint rulemaking procedure to prohibit the covered entities "from sponsoring or investing in a hedge fund or a private equity fund." Subsection 619(a)(1) defines "hedge fund" and "private equity fund" as "a company or other entity that is exempt from registration as an investment company pursuant to section 3(c)(1) or 3(c)(7) of the Investment Company Act of 1940 (15 U.S.C.

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