Private equity - Financial definition
Concise definition of the term private equity
The term private equity generally refers to the activity of investing equity capital in a private company, i.e. a company that is not listed on a public exchange.
Comprehensive definition of the term private equity
In order to sell a private equity stake, the investor has to find a buyer in the absence of a marketplace.
Returns on private equity investments generally occur as a result of a merger or sale, an initial public offering, or a recapitalisation of the company.