Private equity

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Private equity is a source of investment capital from high net worth individuals and/or institutions provided in return for an equity stake in potentially high growth unquoted companies. It can be medium or long-term finance.

Private equity investing may broadly be defined as investing in securities through a negotiated process. Private equity firms generally receive a return on their investment through an initial public offering (IPO), a recapitalization, or a sale or merger of the company they control.

The minimum amount of capital required varies depending on the firm and fund raised. Some funds have a $250,000 minimum investment requirement; others can require millions of dollars.[1]


References

  1. What Is Private Equity?. Investopedia.