private equity
private equity
Noun
This term refers to a specialized sector of finance characterized by high-risk, high-reward investments. It carries a connotation of exclusivity and aggressive corporate restructuring, often associated with leveraged buyouts where a firm acquires a company to improve its efficiency before selling it for a profit.
In a professional context, the term is used as an uncountable mass noun. You do not refer to "private equities" when discussing the capital or the industry; instead, you would use partitive phrases such as "a private equity firm" or "a private equity fund" to denote individual entities within the sector.
Meanings
Related Words
assetcapitalinvestmentportfolioleverageacquisitionbuyoutventure capitalequityshareholderdividendvaluationfunddue diligencecorporate financemergertakeoverhedge fundliquiditysolvencydebtcreditinterest ratecash flowebitdareturn on investmentinternal rate of returnmultiplecapital gaingovernanceboard of directorssharestockbondsecurityunderwritingsynergyrestructuringturnarounddivestiturespin offownershipendowmentcapital expenditureworking capitalleverage ratioamortizationdepreciationfiscal yearauditcomplianceregulationfiduciary dutyarbitragespeculationrisk managementdiversificationallocationbenchmarkyieldpremiumdiscount