Private equity

From Simple English Wikipedia, the free encyclopedia

Private equity is investment in shares of a company that is not publicly listed and consequently does not offer its shares to the general public.

Investors, often from institutions like funds, give a company money, and in turn buy part of that company. The most common types of private equity are: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital.

In leveraged buyouts, investors buy the majority control of a mature company. In venture capital or growth capital investment, investors give money to start-up companies.