Private equity

company initiated by an entrepreneur to develop a scalable economic model

form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or demonstrated high growth

type of financing

accounting measure: net earnings, before interest expenses, taxes, depreciation, and amortization are subtracted

startup company valued at over $1 billion

Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt), or voting power, often dividing these up in proportion to the number of like shares each stockholder owns. Not all stock

financial product

acquisition of a company using a significant proportion of borrowed money

purchase of company by existing managers

fund that invests in distressed assets

any subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares

publicly traded shell company created to take a private company public by acquiring it

process of buying a large stake in a corporation and then using shareholder voting rights to require major changes

type of investment fund

type of private equity investment

Remgro Limited is a South African investment holding company, based in Stellenbosch.

Earnout, or earn-out, is a pricing structure in mergers and acquisitions in which the sellers must "earn" part of the purchase price based on the performance of the business following the acquisition.

venture capital term