private equity firm
Leveraged acquisition company
A private equity firm is an investment company that buys ownership stakes in businesses using pooled capital from wealthy investors and institutions.
Unlike public stock markets, these transactions happen privately.
Private equity firms typically acquire companies, restructure them to increase value, then sell them for profit after several years: The private equity firm laid off half the workforce after the acquisition.
The model is associated with aggressive cost-cutting and debt-financed buyouts.
- buyoutPurchase of controlling interest
- hostile takeoverUnwanted corporate buyout attempt
- management buyoutStaff acquires their company
- leverageBorrowed capital for amplified returns
- debt financingRaising capital through borrowing
portfolio · acquisition · hedge fund · venture capital · deal · investor · dry powder · returns · exit · exit strategy · IPO · Wall Street · capital · valuation · due diligence · merger · assets · fund manager
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- businessesbusiness, company, bank, bakery, enterprise
- financial officesbank branch, finance department, budget office, loan office, tax office
- firmslaw firm, consulting firm, accounting firm, investment firm, engineering firm
- business entitiescorporation, LLC, sole proprietorship, partnership, company
- investorsinvestor, retail investors, retail investor, angel investors, institutional investors
private equity firmpublic company
Stock-traded business entity
listed company · public corporation · mutual fund · index fund · ETF
private equity firmworker cooperative
Firm owned by its labor force
nonprofit organization · credit union · social enterprise · foundation
private equity firmcommercial bank
Deposit and loan institution
lending institution · credit union · savings and loan · bond fund · mortgage lender
private, privately, privacy, privatize, privatization, privation, privy, deprive, deprivation