Private equity

Private equity is a type of investment where an investment firm buys shares of a business that is not listed on a stock exchange, meaning that it does not offer its shares to the general public. A private equity firm is a company that makes such investments. 

Investors, often from institutions like funds, give a company money, and in turn buy part of that company. The most common types of private equity are: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. 

In leveraged buyouts, investors buy the majority control of a mature company. In venture capital or growth capital investment, investors give money to start-up companies.

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Category:Finance