Private Equity

Private equity is privately owned assets.

In other words, equity is a word that describes the assets that a company has or the net worth of a company.

In effect, when a venture capitalist or other equity investor invests in a company, he or she is actually buying a portion of that company’s equity.

Private equity is equity that is privately owned and is usually managed by private equity firms in funds which can be of either pension funds, endowments or the funds of the privately wealthy.