What does private equity mean?
Definitions for private equity
pri·vate equi·ty
This dictionary definitions page includes all the possible meanings, example usage and translations of the word private equity.
Wikidata
Private equity
In finance, private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. Each of these categories of investor has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership. Bloomberg Businessweek has called private equity a rebranding of leveraged buyout firms after the 1980s. Among the most common investment strategies in private equity are: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. In a typical leveraged buyout transaction, a private equity firm buys majority control of an existing or mature firm. This is distinct from a venture capital or growth capital investment, in which the investors invest in young, growing or emerging companies, and rarely obtain majority control. Private equity is also often grouped into a broader category called private capital, generally used to describe capital supporting any long-term, illiquid investment strategy.
Numerology
Chaldean Numerology
The numerical value of private equity in Chaldean Numerology is: 9
Pythagorean Numerology
The numerical value of private equity in Pythagorean Numerology is: 8
Examples of private equity in a Sentence
Most of these clients are working with their banks way in advance of redeterminations, so it is compelling M&A, it is compelling asset sales, it is compelling discussions with private equity. But there is a lot of leverage, the most distressed clients know when they are going to be pinched... and are taking the steps to deal with it.
Leveraged buyouts were already challenging because of a run-up in equity valuations and regulatory curbs on leverage, so the recent volatility makes it even more difficult for private equity to put money to work.
The smaller builders where you do have some private equity ownership, limited trading volumes and the desire to grow, that's where you are more likely to see mergers.
I think that a conscious by-product of the regulators' approach is to put additional pressure on the private equity firms and to get them to put up more equity, which is, of course, at the bottom of the capital structure.
The science tells us that we have under a decade to start to bend the curve on climate, and that is now within the investment time frame of most venture and private equity investors.
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"private equity." Definitions.net. STANDS4 LLC, 2024. Web. 21 Dec. 2024. <https://www.definitions.net/definition/private+equity>.
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