Private Equity Terms
Private equity investing has always been the realm of the seasoned investor, with the major players being institutional investors.
However, more recently there have been increased access points for an expanded base of investors to get into private equity. The main idea behind private equity investing is putting money, or capital, into portfolios of private companies. When investors buy ownership in a company though private equity, they are purchasing privately owned shares of the company that are not available to the public. Because the details of private equity are typically not discussed in the financial news media, the terms used by industry insiders are oftentimes not known by the public. Here are five private equity terms that cover the basics.
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