private equity

[chrstnsln22]

Just wondering, what is private equity? Can anybody explain or give me a slight detail?

Thanks

[Broken Arrow]

I am not sure what conversation it was brought up, so I can't be sure of the context, but equity typically means stocks, and a private equity is one that is not traded publicly.

[tripods68]

As I understand it. Private Equity (PE) is a pooled-of-assets run by financial gurus specializing in certain sector of the market (real estate, technology) injecting capital infusion to companies bottom lines going through reorganization or expansions mode that are not yet public. In return, PE shareholder get preferred stock issuances/ownerships of the company when it does become profitable or IPOs. It's similar to Venture Capitalist (VC) capital injecut but no where near the tremendous amount of $$ requires entrance to PE world. It's really an exclusive elite club because you have to be invited or selected.