Abstract
A private equity (PE) fund is a pool of capital raised mainly from institutional investors and then invested by a PE firm. Rather than creating a highly diversified fund, such as a mutual fund, by investing many small amounts in a large number of companies, a PE fund invests large amounts in the entire share capital of a small number of companies. The important thing to appreciate about PE is that, by acquiring the whole share capital of a company (or a minimum of 51%), the fund manager also obtains control of (the ability to direct) the companies which it has acquired.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Copyright information
© 2012 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Scott-Quinn, B. (2012). Private Equity. In: Commercial and Investment Banking and the International Credit and Capital Markets. Palgrave Macmillan, London. https://doi.org/10.1007/978-0-230-37048-7_22
Download citation
DOI: https://doi.org/10.1007/978-0-230-37048-7_22
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-37047-0
Online ISBN: 978-0-230-37048-7
eBook Packages: Business and EconomicsEconomics and Finance (R0)