Private equity
Also called: PE
ELI5
Investment funds buying substantial stakes in private companies.
Used in conversation
“Private equity is not the same as early-stage venture capital.”
Definition
Investment in private companies, often involving control, leverage, operational change or mature cash flows.
Here “Private equity” means: Investment in private companies, often involving control, leverage, operational change or mature cash flows.
Pitch context
You will see “Private equity” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor & fund types.
Why it matters: In investor & fund types, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Connected terms
- Permanent establishmentThe search label “PE” can route to both entries.
Sources & evidence · 6
Direct term-level sources and supporting source families.
- U.S. Securities and Exchange Commission — Accredited InvestorsDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsSupporting source family · institutional · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16