A:

Though venture capital is one particular type of private equity, there are also other investment opportunities in well-established private or public companies. Though most private equity investment opportunities require steep initial investments, there are still some investment opportunities available to every investor.

The Appeal of Private Equity

Private equity investments are coveted by investors due to the lack of outside public influence on the share price. Many times, a group of institutional and accredited investors pool their money together so they can purchase a large publicly traded company with hopes of revamping the capital structure or otherwise improving the company's finances, then selling the company or cashing out in an initial public offering (IPO) at a later date.

Investing in Private Equity

For investors who are not in a position to put forth millions of dollars for long-term investments, private equity is often ruled out of a portfolio – but it shouldn't be. There are private equity investment firms whose sole business activity is this type of acquisition, management and profitable disposition. These entities are called business development companies, and many of these firms offer publicly traded stock, giving average investors the opportunity to own a slice of the private equity pie. Some examples of these stocks are Apollo Global Management, LLC (APO), The BlackStone Group, L.P. (BX) and KKR & Co, L.P. (KKR). Additionally, average investors can purchase shares of an exchange traded fund (ETF) that holds shares of private equity companies, such as ProShares Global Listed Private Equity ETF (PEX).

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  1. Private Equity

    Private Equity is equity capital that is not quoted on a public ...
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  4. Private Company

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  6. Primary Offering

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