What is a Private Equity Group?

Private Equity Groups..AKA PEGs

Dictionary Definition

Private Equity Groups are an investment management companies that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital.

Plain English

A group of investors who use other people’s money to purchase businesses.  They generally do not operate the business themselves but may insert management to run the business.  They typically hold the businesses for 5-7 years and then sell them for a higher return.

Why it Matters to You

They are a potential buyer for your business.  They can look at your business in two different ways: as a platform or a bolt-on.