Money-market-and-capital-market-in-india-intruments-and-dynamics / Money Market and Capital Market in India - Intruments and Dynamics / Private Equity..
Private Equity (PE) involves the sale of shares privately, not through an Initial Public Offering (IPO), to a firm.
Key characteristics of private equity include:
- Private Sale of Shares:
- Shares are sold directly to a private equity firm, and the equity issued is substantial.
- Limited Investment Period:
- Private equity firms typically stay invested for a limited period, often a few years.
- Management Involvement:
- PE firms often actively participate in the management of the invested company, leveraging their skills and experience to enhance the company's performance.
- Listed or Unlisted Companies:
- The invested company may be listed on a stock exchange or unlisted.
- Lock-In Period:
- There is usually a lock-in period during which the shares are not publicly traded on a stock exchange.
- Objective:
- The primary aim of private equity is to boost the performance and growth of the invested company.
