Private equity firm

A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.

Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions. Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed.

Private equity firms, with their investors, will acquire a controlling or substantial minority position in a company and then look to maximize the value of that investment. Private equity firms generally receive a return on their investments through one of the following avenues:

Private equity

In finance, private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.

A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. Each of these categories of investor has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.

Bloomberg Businessweek has called private equity a rebranding of leveraged-buyout firms after the 1980s. Common investment strategies in private equity include: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. In a typical leveraged-buyout transaction, a private-equity firm buys majority control of an existing or mature firm. This is distinct from a venture-capital or growth-capital investment, in which the investors (typically venture-capital firms or angel investors) invest in young, growing or emerging companies, and rarely obtain majority control.

Private

Private may refer to:

Privates redirects here and may refer to:

See also

Equity

Equity may refer to:

Finance, accounting and ownership

Fairness

David Rubenstein

David Mark Rubenstein (born August 11, 1949) is an American financier and philanthropist best known as co-founder and co-chief executive officer of The Carlyle Group, a global private equity investment company based in Washington D.C. He is also currently serving as chairman of the Kennedy Center for the Performing Arts and chairman of the board of trustees at Duke University, his alma mater. According to the Forbes ranking of the wealthiest people in America, Rubenstein has a net worth of $2.5 billion.

Early life and career

Rubenstein grew up an only child in a Jewish family in an exclusively Jewish neighborhood in Baltimore.

He graduated from the college preparatory high school Baltimore City College, and then from Duke University magna cum laude in 1970. He earned his law degree from the University of Chicago Law School in 1973, where he was an editor of the University of Chicago Law Review. From 1973 to 1975, Rubenstein practiced law in New York with Paul, Weiss, Rifkind, Wharton & Garrison. Prior to starting Carlyle in 1987, with William E. Conway, Jr. and Daniel A. D'Aniello, Rubenstein was a domestic policy advisor to President Jimmy Carter and worked in private practice in Washington, D.C.