What is other private equity?
Most other private equity is invested in more mature or later-stage companies. Frequently, other private equity is a source of liquidity for owners of privately held companies. Often, other private equity is referred to as leveraged buyouts (LBOs) or management buyouts (MBOs). Buyout financing, or acquisition financing, funds the purchase by an investor of full control of a business, or it finances the purchase by other new owners. Buyout firmsanother form of private equitymay buy the majority of the stock of a private division of a parent company when the parent divests it. Or they may buy the majority of the stock of a company, along with its management team, when the companys owner is ready to sell. A leveraged buyout is when buyout funding is supplemented by additional money borrowed from lenders.
