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.

Related

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

Categories
Opposites
market accessibility

private equity firmpublic company

Stock-traded business entity

listed company · public corporation · mutual fund · index fund · ETF

ownership structure and control

private equity firmworker cooperative

Firm owned by its labor force

nonprofit organization · credit union · social enterprise · foundation

capital function

private equity firmcommercial bank

Deposit and loan institution

lending institution · credit union · savings and loan · bond fund · mortgage lender

Family

private, privately, privacy, privatize, privatization, privation, privy, deprive, deprivation

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Top 500,000
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