Difference between revisions of "Private equity"
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| − | '''Private | + | '''Private equity''' refers to the non-public ownership of [[equity]]. As such the organization is not listed on a [[stock exchange]] and is not regulated like public [[mutual fund|mutual funds]]. |
Private Equity Funds are usually open to the very rich who can afford a large buy in cost, and can be quite risky placing large sums of money to buy out companies (such as the [[Chrysler]] Group) and then either turn them around. It is difficult to determine the return from a Private Equity firm because they do not provide annual reports and each fund is different, but some investors have made as much as 30% per year. | Private Equity Funds are usually open to the very rich who can afford a large buy in cost, and can be quite risky placing large sums of money to buy out companies (such as the [[Chrysler]] Group) and then either turn them around. It is difficult to determine the return from a Private Equity firm because they do not provide annual reports and each fund is different, but some investors have made as much as 30% per year. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 20:44, November 17, 2008
Private equity refers to the non-public ownership of equity. As such the organization is not listed on a stock exchange and is not regulated like public mutual funds.
Private Equity Funds are usually open to the very rich who can afford a large buy in cost, and can be quite risky placing large sums of money to buy out companies (such as the Chrysler Group) and then either turn them around. It is difficult to determine the return from a Private Equity firm because they do not provide annual reports and each fund is different, but some investors have made as much as 30% per year.