Private equity

Private equity covers the many ways of raising finance ‘off exchange’.

For example in a ‘public-to-private’ deal, an external investor might take a listed company private by buying its shares using large amounts of debt finance, for a target fixed period of, perhaps, five years. In return that investor might ask for a seat on the board and the right to convert debt into equity later when the company is re-listed. Meanwhile, the business is ruthlessly stripped of costs and non-core businesses in an attempt to boost profits.

Should this work, the private equity backers and the firm’s management stand to make big profits. But critics argue that private equity in this form adds little true value to a listed firm and is little more than asset stripping.

66% off newsstand price

12 issues (and much more) for just £12

That’s right. We’ll give you 12 issues of MoneyWeek magazine, complete access to our exclusive web articles, our latest wealth building reports and videos as well as our subscriber-only email… for just £12.

That’s just £1 per week for Britain’s best-selling financial magazine.

Click here to take advantage of our offer

Britain is leaving the European Union. Donald Trump is reducing America’s role in global markets. Both will have profound consequences for you as an investor.

MoneyWeek analyses the critical issues facing British investors on a weekly basis. And, unlike other publications, we provide you with the solutions to help you turn a situation to your financial advantage.

Take up our offer today, and we’ll send you three of our most important investment reports:

All three of these reports are yours when you take up our 12 issues for £12 offer today.

MoneyWeek has been advising private British investors on what to do with their money since 2000. Our calls over that period have enabled our readers to both make and save a great deal of money – hence our position as the UK’s most-trusted investment publication.

Click here to subscribe for just £12