Private Equity Meaning and Definition
Private Equity
Pronunciation
/ˈpraɪvət ˈekwɪti/
Part of Speech
Noun
Definition
A type of investment capital that is not publicly traded on a stock exchange, but is provided by private investors to companies in return for equity or partial ownership.
Etymology
The term “private equity” originates from the investment strategy of accessing private companies, rather than publicly traded companies, and providing capital in exchange for equity or ownership.
Usage Notes
Private equity is often used by investors looking to generate high returns by investing in companies that are not publicly traded.
Cultural References
Private equity has been referenced in popular culture, such as in the TV show “Billions” and in books about finance like “The Big Short”.
Idiomatic Expressions or Phrases
“Private equity firm” is a common phrase used to describe a company that invests in private companies.
Related Words or Phrases
Investment capital, equity, venture capital, hedge fund
Collocations
Private equity firm, private equity investment, private equity portfolio
Frequency of Use
Private equity is a relatively common term in the finance industry, but its usage is limited to specific contexts and professionals.
Common Misspellings
Privet Equity, Preity Equity, Privett Equity