Private equity
Equity investment in privately held businesses, including buyouts and growth capital. A private-equity investor may also acquire a publicly traded company and take it private.
Private equity in round numbers
Hypothetical annual US$ millions: a private-equity investor evaluates buying a company with earnings before interest, taxes, depreciation and amortization (EBITDA) of 5.83 at an 8x enterprise-value-to-EBITDA multiple. That implies enterprise value of 46.64, or 46.6 rounded to one decimal, before the cash, debt and other adjustments needed to determine equity value. This is a valuation illustration, not a completed transaction.
Shayne Fitz-Coy’s definition of Private equity
Private equity is just the gimbap shop at scale.
Terms Related to Private equity
Public equity · LBO · GP · LP · Buy to sell · Secondary buyout (sponsor-to-sponsor) · Buy It, Make It Better, Sell It · All of the glossary