Brown Field Investment

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Dictionary Says

Definition of 'Brown Field Investment'

When a company or government entity purchases or leases existing production facilities to launch a new production activity. This is one strategy used in foreign-direct investment.
Investopedia Says

Investopedia explains 'Brown Field Investment'

The alternative to this is a green field investment, where a new plant is constructed.

Related Definitions

  • Green Field Investment

    A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. In addition to ...
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  • Foreign Direct Investment - FDI

    An investment abroad, usually where the company being invested in is controlled by the foreign corporation.
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  • Management Risk

    The risks associated with ineffective, destructive or underperforming management, which hurts shareholders and the company or fund being managed. This term refers to the risk of the ...
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    • Political Risk

      The risk that an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in ...
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