Knowra Private equity Private equity Private equity is investment in companies whose shares are not publicly traded, often through funds that buy stakes, seek to increase their value, and later sell them.
Private equity fund : An investment vehicle that pools capital to acquire or invest in private companies. It is the main structure through which private equity investors commit capital and hold deals.
Limited partner : An investor in a partnership whose role and liability are limited under the partnership agreement and law. Pension funds and other institutions often supply private equity funds as limited partners.
Venture capital : Investment in young companies with high growth potential, commonly in exchange for equity. It is a distinct form of private-market investing focused on earlier-stage companies.
Public equity : Ownership shares in companies traded on public stock exchanges or other public markets. It differs in liquidity, disclosure, and access from ownership in private companies.
Corporate governance : The systems and practices through which companies are directed, controlled, and held accountable. Private equity ownership often changes board oversight, incentives, and control of portfolio companies.
Limited partnership : A business structure with general partners who manage operations and limited partners whose liability is usually limited to their investment. Private equity funds commonly use this structure to separate managers from capital providers.
General partner : A partner responsible for managing a partnership and, in many structures, bearing greater liability. The general partner usually makes investment decisions and oversees a private equity fund.
Growth equity : Equity investment in established companies seeking expansion, generally without a change of control. It shows how private equity can fund growth without relying on a buyout.
Hedge fund : An investment fund using varied strategies, often trading liquid securities and other assets. Hedge funds typically trade investments rather than take long-term control of operating companies.
Capital structure : The mix of debt and equity a company uses to finance its operations and assets. Buyouts can substantially alter a company’s debt burden and financing risk.
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