Golden
Private equity

Private equity

Private equity is a non-publicly traded source of capital from investors who seek to invest or acquire equity ownership in a company.

Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, expand working capital, and to bolster and solidify a balance sheet. 



Private equity firms raise money from institutional investors and accredited investors for funds that invest in different types of assets. Private equity is an alternative form of private financing, away from public markets, in which funds and investors directly invest in companies or engage in buyouts of such companies. Equity co-investment is a minority investment in a company by investors alongside a private equity fund manager or venture capital firm.

Timeline

1988

When it took place in 1988, conglomerate RJR Nabisco's purchase by Kohlberg, Kravis & Roberts (KKR) for $25.1 billion was the biggest transaction in private equity history.

1901

Banking magnate JP Morgan is said to have conducted the first leveraged buyout of Carnegie Steel Corporation, then among the largest producers of steel in the country, for $480 million in 1901.

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