Glossary
Private Equity
Private Equity refers to ownership stakes in companies that are not listed on a stock exchange. Investors provide equity capital through specialised funds to finance and develop companies, with the intention of divesting after several years. Capital is largely locked up for the duration of the fund.
At a glance
01
Private Equity funds typically have terms of ten years or more.
02
Capital is drawn down gradually through Capital Calls.
03
Private Equity is classified as an illiquid alternative asset class.
Frequently asked questions
Listed shares are traded on stock exchanges and can be bought or sold daily. Private Equity refers to stakes in non-listed companies that are locked up for years and cannot be bought or sold on an ongoing basis.
