private-equity-firm

Vocabulary Word

Definition

'Private equity firm' is a financial institution that pools money to buy and sell businesses. They mostly focus on making long-term investments in companies in order to improve their value.

Examples in Different Contexts

In finance, a 'private equity firm' is a company that uses its funds or the capital from investors to acquire ownership in private companies. A finance professor might explain, 'Private equity firms look for businesses with potential for significant improvement and value increase, aiming to eventually sell those businesses for a profit.'

Practice Scenarios

Marketing

Scenario:

We are considering a complete overhaul of our strategy and brand. A rebranding campaign might be exactly what we require right now.

Response:

If we relaunch our brand, aligning with a private equity firm could bring the necessary capital and strategic changes.

Tech

Scenario:

Our tech-startup is gaining momentum, but we could use additional investments. This may be the right time to approach potential investors.

Response:

Our startup possesses strong potential. Let's consider pitching to a private equity firm for additional capital.