Difference between private equity and venture capital?


I

Iceman

What's the difference between private equity and venture capital?
 
Ad

Advertisements

A

Alan Frame

Iceman said:
What's the difference between private equity and venture capital?
VC buys part of a small company and hopes it will grow.

PE buys all of an established company and hopes to cut costs/improve
profits, then re-float or sell to the trade.

IMO, Alan
 
J

john boyle

Iceman said:
What's the difference between private equity and venture capital?
They are different things.

Private equity is usually when an individual or the trust or companies
that they control make an initial subscription for new shares. Often
these shares are not traded on a recognised exchange.

Venture Capital is a share in companies that are usually just starting
up or expanding and are therefore more risky but have the potential for
greater returns. These shares may, or may not, be traded on one of the
recognised trading exchanges.
 
Ad

Advertisements

P

Paul

Iceman said:
What's the difference between private equity and venture capital?
Nothing at all. The two are synonymous (I work for a Big 4 accountancy
firm - VCs/PE houses are my clients).
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top