private-equity

Vocabulary Word

Definition

'Private equity' is money invested in businesses that are not publicly traded on the stock market. This money is used to buy the business, make improvements to it, and then sell it with the aim of making a profit.

Examples in Different Contexts

In investment, 'private equity' refers to capital investment made into companies that are not publicly traded on the stock market. An investment analyst might explain, 'Private equity firms invest in private companies, aiming to improve their value through strategic management and eventually sell their stake for a profit.'

Practice Scenarios

Leadership

Scenario:

The company performance is strong this year, and it might be the right time to consider acquiring struggling businesses in our sector and turning them around.

Response:

With the private equity fund, we would have both the financial resource and strategic counsel for successful acquisitions.

Tech

Scenario:

Our platform is showing promising user engagement stats. Perhaps we need to act on this opportunity to secure additional funding.

Response:

Yes, we should present our growth metrics to potential private equity investors to secure more funding.