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Definition: Private equity

Christina Hernandez Sherwood, eMed Editor, MedCity News

Definition: Private equity

Private equity is investment capital in a startup that is not quoted on a public stock exchange. For entrepreneurs, venture capital is a prominent source of private equity.

Private equity, typically a long-term investment, is an active form of financing, meaning that investors seek to add value to the companies they support. This is often accomplished through seats on the board.

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