Private Markets
Private Equity
Definition
What is Private Equity?
InvestmentAn asset or commitment of money made with the expectation of future income, growth, or both. in privately held companies, often with active ownership and a multi-year exit plan.
Example in practice
How This Looks in Practice
A fund acquires a controlling stake in a manufacturing company.
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Related Terms
Private Markets
Venture Capital
Equity financing for young, high-growth companies with substantial uncertainty.
Private MarketsAngel Investor
An individual who invests personal money in early-stage companies.
Private MarketsSeed Funding
Early financing used to develop a product, validate demand, and build an initial team.
Startup InvestingTerm Sheet
A preliminary document outlining the main commercial terms of a proposed investment.