Definitions for private equity firm
pri·vate equity firm

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1. Private equity firm

   A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies. Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions. Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed. Private equity firms, with their investors, will acquire a controlling or substantial minority position in a company and then look to maximize the value of that investment. Private equity firms generally receive a return on their investments through one of the following avenues: an initial public offering (IPO) — shares of the company are offered to the public, typically providing a partial immediate realization to the financial sponsor as well as a public market into which it can later sell additional shares; a merger or acquisition — the company is sold for either cash or shares in another company; a recapitalization — cash is distributed to the shareholders (in this case the financial sponsor) and its private equity funds either from cash flow generated by the company or through raising debt or other securities to fund the distribution.Private equity firms characteristically make longer-hold investments in target industry sectors or specific investment areas where they have expertise. Private equity firms and investment funds should not be confused with hedge fund firms which typically make shorter-term investments in securities and other more liquid assets within an industry sector but with less direct influence or control over the operations of a specific company. Where private equity firms take on operational roles to manage risks and achieve growth through long term investments, hedge funds more frequently act as short-term traders of securities betting on both the up and down sides of a business or of an industry sector's financial health.

How to pronounce private equity firm?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say private equity firm in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of private equity firm in Chaldean Numerology is: 6

2. Pythagorean Numerology

   The numerical value of private equity firm in Pythagorean Numerology is: 9

Examples of private equity firm in a Sentence

1. Beth Gamel:

   If [a business owner] were to go to a bank, private equity firm or anywhere else, they’d need a business plan and projections, this raises the conversation to a higher plane and gives the lender permission to ask tougher questions than if someone was looking for money to tide them over.

2. John Sirico:

   If the loan does not perform, then the private equity firm may be in the driver's seat to potentially own the company after a bankruptcy.

3. Jacques Stern:

   My ambition was to do something new and with a private equity firm, i will be CEO and a shareholder, so it will be more entrepreneurial.

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Private_Equity_Firm