Back أسهم خاصة Arabic Şəxsi investisiya Azerbaijani Дялов капитал Bulgarian Capital d'inversió Catalan Soukromý kapitál Czech Private Equity German Ιδιωτικά επενδυτικά κεφάλαια Greek Capital inversión Spanish سرمایهگذاری خصوصی Persian Private equity Finnish
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Private equity (PE) is stock in a private company that does not offer stock to the general public. Private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms, rather than the companies in which they invest.[1]
Private-equity capital is invested into a target company either by an investment management company (private equity firm), a venture capital fund, or an angel investor; each category of investor has specific financial goals, management preferences, and investment strategies for profiting from their investments. Private equity provides working capital to finance a target company's expansion, including the development of new products and services, operational restructuring, management changes, and shifts in ownership and control.[2]
As a financial product, the private-equity fund is a type of private capital for financing a long-term investment strategy in an illiquid business enterprise.[3] Private equity fund investing has been described by the financial press as the superficial rebranding of investment management companies who specialized in the leveraged buyout of financially weak companies.[4]
Evaluations of the returns of private equity are mixed: some find that it outperforms public equity, but others find otherwise.[5]
- ^ Investments in private equity An Introduction to Private Equity, including differences in terminology. Archived 5 January 2016 at the Wayback Machine
- ^ "Venture Capital Investing". PrivCo. Retrieved 25 April 2022.
- ^ "Winning Strategy For Better Investment Decisions In Private Equity". USPEC. 5 November 2019. Retrieved 27 January 2020.
- ^ "Everything is Private Equity Now". Bloomberg. 3 October 2019. Retrieved 15 August 2021.
- ^ "Is private equity actually worth it?". Financial Times. 5 March 2024.