Management and Organizational Studies 2310A/B Chapter Notes - Chapter 14: Venture Capital, Leveraged Buyout, Preferred Stock

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Danny Morrison

Document Summary

*any of these may be referred to as a private equity investor. Individual investors who buy equity in small private firms (often start ups: they typically receive a sizeable equity share in the business in return for their funds, have substantial influence in decision making of the firm. Private equity firms: these firms invest in the equity of existing privately held firms rather than start up companies. Institutional investors: pension funds, insurance companies, endowments, manage large quantities of money, active investors in private companies directly or indirectly by becoming limited partners to venture capital firms. Sovereign wealth funds: pools of money controlled by the government, revenue from royalty and taxes collected, limited partners in global private equity markets. Corporate investors: established corporations purchase equity in younger, private companies, might invest for corporate strategic objectives in addition to the desire for investment returns.