2006-12-13 05:40:11 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
A private equity group is a privately-held company that buys out or substantially buys into companies for the purposes of enacting some positive change so that the value of the acquisition will be higher when they spin it off later.
ESL Group, Blackstone Group, and PAI Partners are examples of private equity. Eddie Lampert of ESL, which is technically a hedge fund, did the KMart/Sears bankruptcy buyout and merger, resulting in Sears Holdings. The thing is that they don't have to tell everybody in public announcements as who is investing and how much, etc. They buy a company, fix it up, and sell it a few years later for bunches more, if all works well.
2006-12-13 07:10:26 · answer #1 · answered by Rabbit 7 · 0⤊ 0⤋
They invest in private companies. i.e. companies that are not traded on an exchange or the OTC market.
2006-12-13 05:43:48 · answer #2 · answered by Ubiquity 2 · 0⤊ 0⤋