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 (typically venture capital firms or angel 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.
71-75 Shelton Street, Covent Garden, London, UK, WC2H 9JQ
Request our latest Pitch Deck
Disclaimer: Nothing published by Ascenture Capital should be considered personalized investment or tax advice. There are significant risks associated with investing in commodities especially with Oil. This is not a solicitation to buy or an offer to sell any securities. Any such solicitation or offer will only be made through a Private Placement Memorandum in accordance with Regulation D Rule 506c. A thorough discussion of Tax Benefits and Risk Factors associated with the investments promoted are contained within the Private Placement Memorandum of each investment type.