Glossary - Private equity
Description
Private equity (PE) is capital invested directly into private companies, or used to acquire public companies and take them private. It is typically provided by private equity firms through closed-end funds with long lock-up periods, aiming to improve operations, grow value, and sell at a profit. Investors are usually institutions or high-net-worth individuals seeking higher returns in exchange for illiquidity and higher risk.
Alternate Names
- PE
- Buyout capital
- Venture equity
- Growth equity
- Leveraged buyouts
