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Investopedia Video: Private Equity Fundamentals



Private equity refers to company ownership by a specialized investment firm. Typically, a private equity firm will establish a fund and use it to buy multiple businesses, with the goal of selling each one within a few years at a profit.

Private equity firms will often target an underperforming business and, after purchasing the company, use their management expertise to improve profitability.

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17 comments
@TheGoProGuy07

So it's kind of like kitchen nightmares?

@BigDickEnergy777

Funny how the music applies so well to this video!

@someonenamevalencia7527

so like buying stock with dividends but instead of 1 person, it's a business and buys 100% of the stocks of another business to keep it

@stapia505

Investopedia makes everything way more understandable.