Private Equity

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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 ?
This shortlisting recognises our dominance in the market, strength of our ties to private equity investors and the considerable volume of deals that we have completed in the last year to help British businesses drive forward their growth through investment.
Private equity investors typically invest in a huge range of opportunities.
While the majority expected debt multiples to remain at similar levels to 2010, in a reversal of last year's results, a larger proportion of bankers - when compared to private equity investors - expected to see more debt in deals this year.
Politicians and unions weighed in after Qantas and Australia's Macquarie Bank confirmed on Wednesday they were discussing a buyout proposal, which also involves US private equity investor Texas Pacific Group and Pacific Equity Partners.
Invariably, private equity investors, business owners and their investment banking advisors have a difficult time agreeing on the fair-market value of the company.
The most important thing private equity investors look for when investing in an insurance company is the quality of the management team, said Bead Cooper, a partner with Capital Z Financial Services Partners.
Almost half (44%) of the private equity investors questioned said that new investments would be their biggest priority during 2006 while a quarter (24%) said that exits would top their agenda.
Media-focused private equity investor Wicks Business Information acquired Asset Alternatives and Georgetown Publishing.
Even such civic-minded private equity investors insist on a clear exit strategy for the ventures they back.
When private equity investors have a controlling stake or have purchased the entire company, they can be expected to play a more hands-on role.
Finally, the study provides data on returns to private equity investors and analyzes the major secular and cyclical influences on returns.
With assets under management of more than $15 billion, PCG AM is a leader in the private equity industry based on providing innovative and customized solutions to private equity investors worldwide.

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