The basics
Private equity
Firms that buy or invest in established companies, usually aiming to make them more profitable and sell them on within a few years. Often shortened to PE.
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You'll hear it as
We've been bought by a private equity firm.
Why it matters to you.
When private equity buys a company, cost-cutting and a push for profit usually follow quickly.
Also called PE.
Related terms.
Videos.
No video mentions Private equity by name yet. These are on the same topic, Business & startups.