Private Equity

Private Equity / Private Placement

Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, expand working capital, and to bolster and solidify a balance sheet. 

Types of Shares

Ordinary SharesPreference Shares
Shareholders of these shares are the owners of the companyThey are not owners of the company
Receive dividends after preference dividend been paidFIXED Dividend according to contract
Ordinary shares have no right to an accumulation of dividends from previous years.All accumulated dividends must be paid to preference shareholders before any dividend for ordinary shareholders is declared.
Shareholders has voting rightsNO Voting Rights
More profits, more dividend, No profits, No DividendIn the event of dissolution, they would receive their capital
Greater RiskLess Risk