Private equity fund
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A private equity fund is a collective investment scheme (fund) that invests in companies and/or entire business units with the intention of obtaining a controlling interest (usually by becoming a majority shareholder, sometimes by becoming the largest plurality shareholder) so as to be in the position to restructure the target company's reserve capital, management, and organizational infrastructure. Once one or more of these objectives are accomplished, the target companies are delisted from public stock exchanges (unless already unlisted), held private, restructured over a period of 3–7 years, and then, again, relisted through an IPO.
Restructuring may be done through leveraged buyouts, venture capital, growth capital, angel investing, mezzanine debt, management share participation programmes and others.
Major investors in this industry include Goldman Sachs Private Equity Group, KKR (Kohlberg, Kravis, Roberts & Co.), Apollo Management, Bain Capital, Blackstone Group, Hellman & Friedman, Golden Gate Capital, Silverlake, Berkshire Hathaway, Carlyle, and Texas Pacific Group.
[edit] See also
- Private Equity for more information on private equity funds.
- Private equity firms for a list of active private investment firms.
