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.

Paul Hodges: house prices could fall 50% in 'Great Unwinding'

Merryn Somerset Webb interviews Paul Hodges about deflation, the global economy's 'Great Unwinding', and how Britain's house prices could halve.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


27 January 1969: Students set up the LSE-in-exile

Students at the London School of Economics occupied the University of London Union building on this day in 1969, in protest at the erection of new security gates.