Overview of Private Equity
Private equity can be broadly defined to include the following different forms of investment:
1) Leveraged Buyout: Leveraged buyout (LBO) refers to the purchase of all or most of a company or a business unit by using equity from a small group of investors in combination with a significant amount of debt. The targets of LBOs are typically mature companies that generate strong operating cash flow.
2) Growth Capital: Growth capital typically refers to minority equity investments in mature companies that need capital to expand or restructure operations, finance an acquisition, or enter a new market, without a change of control of the company.
3) Mezzanine Capital: Mezzanine capital refers to an investment in subordinated ...
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