Private equity
Non-traded ownership stakes
Private equity is investment capital not traded on public stock exchanges, typically pooled from wealthy individuals and institutions to acquire or invest in companies directly.
Private equity firms buy businesses, restructure them for efficiency or growth, then sell them for profit: The company was taken private by a private equity firm.
The term often carries connotations of aggressive cost-cutting and job elimination.
- recapitalizationRestructuring corporate capital composition
- leveraged buyoutsAcquisitions funded by borrowing
- management buyoutStaff acquires their company
- due diligencePre-transaction reasonable care
- preferred stockPriority-claim corporate ownership
institutional investors · venture capital · fundraising · fund managers · dry powder · bridge loans · exit strategy · carve-outs · skin in the game · angel investors · warrants · investment banks · term loans · portfolio management · value creation · options · risk assessment · hostile takeover
Private equitypublic markets
Shared commercial gathering spaces
exchange-traded funds · mutual funds · index funds · stock market · public companies
Private equitypublic debt
State's accumulated financial obligations
bonds · fixed income · government securities · corporate bonds · sovereign debt
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