private equity

noun

plural private equities
1
: investment in a company that does not trade on a public stock exchange : interest in a private company
… the proportion of the pension fund parked in private equity grew from nearly 21% of the portfolio in 2014 to about 28% earlier this year.Alex Baumhardt
often used before a noun
private equity investments
2
: investment groups that pool the money of investors in order to acquire ownership shares in private companies
Private equity likes to acquire firms with debt, merge some of them together, find efficiencies, expand and then sell the company or go public on the stock market—in hopes of making a profit for investors.Kelly Yamanouchi

Examples of private equity in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The club is, in fact, controlled by funds managed by Clearlake Capital, the private equity firm Feliciano co-founded. Kevin Acee, San Diego Union-Tribune, 2 May 2026 Last year, the company sold a minority stake to private equity firm Main Post Partners and said the deal would help Smoothie King accelerate growth and innovation. Amelia Lucas, CNBC, 1 May 2026 Athletes suing to keep playing are sure to argue that if a school and conference have partnered with a private equity company to boost revenue, there is an even more persuasive argument that these athletes are selling services in a pro sports-style market. Michael McCann, Sportico.com, 1 May 2026 Walgreens, which was founded in Chicago about 125 years ago, was sold last year to private equity firm Sycamore Partners. Lisa Schencker, Chicago Tribune, 1 May 2026 Another study, published in JAMA Health Forum, found that patients tend to pay more for the same doctor’s visits when their doctor is part of a hospital or private equity firm. Berkeley Lovelace Jr, NBC news, 28 Apr. 2026 In 2023, the DFL provisionally agreed to tender part of its marketing rights to a group of private equity firms. Sebastian Stafford-Bloor, New York Times, 28 Apr. 2026 No banks or private equity would touch this. Jen Murphy, Robb Report, 26 Apr. 2026 The bill would, among other provisions, require state approval for any transfer of a large physician practice involving a private equity entity. Katy Golvala, Hartford Courant, 26 Apr. 2026

Word History

First Known Use

1959, in the meaning defined at sense 1

Time Traveler
The first known use of private equity was in 1959

Browse Nearby Words

Cite this Entry

“Private equity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/private%20equity. Accessed 5 May. 2026.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster