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 noun

private 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

Examples of private equity in a Sentence

Recent Examples on the Web

In effect, the Federal Reserve’s own survey data is a quiet admission that private equity’s exit backlog and private credit’s maturity concentration have moved from an industry talking point to a supervisory concern. — Mayra Rodriguez Valladares, Forbes.com, 29 Aug. 2026

Analysts also noted that a private equity buyer would eliminate any potential conflict concerns and could be most interested to ride the stock's momentum. — Sarah Whitten, CNBC, 28 Aug. 2026

But it’s still privately held — and its founders have no plans to go public, adopt a franchise model or sell the business to a private equity group. — Allie Canal, NBC news, 27 Aug. 2026

The bank has also widened its high-end options, introducing programs like its Alternative Investments Expanded Access Program to give wealth clients specialized access to private equity funds and emerging managers. — Charlotte Observer, 27 Aug. 2026

Word History

First Known Use

1959, in the meaning defined at sense 1

Rhymes for private equity

• inequity