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how do private equity firms operate

2007-07-12 04:40:55 · 1 answers · asked by AbrantieNana 1 in Business & Finance Investing

1 answers

They raise money from investors and then buy equity in companies.

They are negotiated deals not involving the stock market. Because they are private, there is no regulation. Frequently, they are providing startup capital or are buying a company that is in trouble. They make their money by either growing the startup or fixing the troubled company and then taking it public in about three years (they hope).

2007-07-12 04:52:37 · answer #1 · answered by Ted 7 · 0 0

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