private-equity-strategy

Vocabulary Word

Definition

In finance, 'private-equity-strategy' refers to the approach or methodology employed by private equity firms when investing in or managing companies not listed on the stock market. It's kind of the roadmap they use to grow businesses and make money.

Examples in Different Contexts

In exit planning, 'private equity strategy' encompasses decisions about when and how to sell investments to maximize returns. An investment banker might discuss, 'An effective exit strategy is critical in private equity, involving timing the market correctly and choosing the best exit route, whether through an IPO, sale, or merger.'

Practice Scenarios

Impact

Scenario:

The potential for both social impact and profit is immense in sustainable energy sector. It seems promising for our next investment.

Response:

Absolutely, our private equity strategy needs to focus on the sustainable energy sector, given its importance and impact potential.

Tech

Scenario:

There's a huge potential for digital transformation in the traditional sectors. We must approach with a strong plan of action.

Response:

Let's leverage our expertise for a private equity strategy that enables digital transformation in traditional sectors.