Private equity

Also called: PE, PE firm, private equity firm, buyout firm

Investment firms that buy stakes in, or all of, established private companies, usually aiming to improve them and sell later at a profit. It differs from venture capital, which backs young, fast-growing startups.

For example: A private equity firm buys a regional IT services company and merges it with two similar companies.

Connects to 4

Venture capital Concept
EBITDA Concept
Exit Concept
Limited partner Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.