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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The owner recently received an unsolicited offer from a private equity group to buy the business. Allen Buchanan, Oc Register, 30 May 2026 For Joyce, one thing that means is an exit strategy that does not involve private equity or an IPO. Jill Goldsmith, Deadline, 30 May 2026 The provision that has received the most attention would limit the ability of private equity firms and other institutional investors to acquire and operate single-family homes as rental properties. Alex Schwartz, The Conversation, 29 May 2026 Kinexx isn’t just gatekeeping this real estate play to private equity, intentionally democratizing access to capital. Stephanie Tharpe, Forbes.com, 29 May 2026 Sheryl Sokoloff is the spouse of Jonathan Sokoloff, managing partner of private equity firm Leonard Green & Partners. Sandra McDonald, Los Angeles Times, 29 May 2026 To private equity, that looked like a lucrative, low-risk deal. Tim McDonnell, semafor.com, 28 May 2026 Potential players could include Hollywood studios, live entertainment companies or private equity. Rebecca Rubin, Variety, 28 May 2026 This will pose a growing challenge as companies mature and need to attract investment from a broader group that includes traditional private equity and major banks. Justin Worland, Time, 28 May 2026

Word History

First Known Use

1959, in the meaning defined at sense 1

Time Traveler
The first known use of private equity was in 1959

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Cite this Entry

“Private equity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/private%20equity. Accessed 1 Jun. 2026.

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