private equity
noun
plural private equities
1
: investment in a company that does not trade on a public stock exchange : interest in a private company
… the proportion of the pension fund parked in private equity grew from nearly 21% of the portfolio in 2014 to about 28% earlier this year.—Alex Baumhardt
—often used before a nounprivate equity investments
2
: investment groups that pool the money of investors in order to acquire ownership shares in private companies
Private equity likes to acquire firms with debt, merge some of them together, find efficiencies, expand and then sell the company or go public on the stock market—in hopes of making a profit for investors.—Kelly Yamanouchi
Cite this Entry
“Private equity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/private%20equity. Accessed 7 Jul. 2026.
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