Private Equity Firms

Private equity is an asset class that includes equity securities of companies that are not traded publicly. A private equity firm raises funds and invests in these securities following various strategies like venture capital, leveraged buyout or mezzanine capital.

A private equity firm will obtain a majority or influential minority stake in a company and use that position to restructure the management, capital and organization. The anticipated outcome is an improved company that will translate into high returns for the firm through either:

• A merger or purchase: the company either fuses with another company or is bought by another company. Either of these options can generate big money for shareholders.
• IPO (Initial Public Offering): An IPO allows the public to purchase shares in the company. This is generally a high-yielding stage for a company and therefore the private equity firm also benefits.
  
• Recapitalization: This is when cash is distributed the shareholders.

Link to This Resource: Private Equity Firms

http://privateequityblogger.com/2008/06/private-equity-firms.html