|
What is Private Equity?
When equity capital is made available
to companies or investors, but not quoted on a stock market. The funds
raised through private equity can be used to develop new products and
technologies, to expand working capital, to make acquisitions, or to
strengthen a company's balance sheet. Our Sister company at PESWA Capital is our primary source for liquidity in these types of transactions.
What is Equity?
Equity is a term whose meaning depends very much
on the context. In general, you can think of equity as ownership in any
asset after all debts associated with that asset are paid off. For
example, a car or house with no outstanding debt is considered the
owner's equity since he or she can readily sell the items for
cash. Stocks are equity because they represent ownership of a company,
whereas bonds are classified as debt because they represent an
obligation to pay and not ownership of assets. |