In my prior post, “LP Corner: Understanding the “Equity” of Private Equity” we explored the “Equity” in Private Equity. In this post we explore the “Private” in Private Equity. These posts are complements to my initial post “LP Corner: What is Private Equity?”. The hope is that these posts will provide the reader with a good overview of what “Private Equity” means.
So what does the “Private” in Private Equity mean? In essence, it means that the companies that PE funds (buyout, venture capital and growth equity funds) invest in and/or acquire are privately-held companies. To understand this, first we'll explore what public companies are, and then we'll take a deeper dive into what private companies are, and we'll finish with a discussion of the types of companies that buyout funds acquire..
So what does the “Private” in Private Equity mean? In essence, it means that the companies that PE funds (buyout, venture capital and growth equity funds) invest in and/or acquire are privately-held companies. To understand this, first we'll explore what public companies are, and then we'll take a deeper dive into what private companies are, and we'll finish with a discussion of the types of companies that buyout funds acquire..
