What is Private Equity?

Generally, private equity refers to the share capital, or ownership, of private companies.

The term, “Private Equity” also refers to an industry that makes long-term investments into private companies. Different segments of the Private Equity “industry” focus on different stages in a company’s life cycle. Venture capital (“VC”), growth and expansion capital, and leveraged buy-outs (“LBO”) are all different Private Equity strategies focused on private companies. Private Equity investors become shareholders with a view to increasing the value of those companies in order to sell the shares they bought, and to make profits.

As an industry, Private Equity exists to make profits. However, because Private Equity focuses upon creating value in private companies, the Private Equity industry has a material effect on economic growth, employment and wealth creation. It is one of the largest sources of strategic investment capital in the world holding over $3 Trillion in assets under management (AUM) globally, with European Private Equity firms holding over €550 Billion in AUM.

Cyprus Capital Partners is the first Private Equity firm to bring the investment standards, strategic capital and long-term value creation objectives to Cyprus and the Eastern Mediterranean.

To learn more about the Private Equity industry in Europe, visit: the European Private Equity and Venture Capital Association (EVCA) website by clicking here.

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