Small Business Investing

Private Equity

What is the main purpose of private equity investing?

The main purpose of private equity investing is to buy all or part of a company and use the company’s new earnings to repay the original investment, plus provide for a return on that investment over time. Sometimes the liquidity event may be the ultimate sale of the newly reorganized company to another buyer or group of buyers, or eventually offering shares to the public for the new entity.


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