Post #2

Private Equity…simplify it for the masses

When I used to hear the words Private Equity, I immediately would block the term from my brain and go about my day. There’s no way I will ever know what goes on in an industry like that. 

Like most everything in finance, it’s actually not as complicated as it sounds. Private equity in one sentence is: People who buy a private company, improve it, then sell it off. 

It’s not all that different from buying an old house, improving the insides, adding some fresh paint,, and selling it for more than you paid + what you put into it. 

It of course can get more complex than this, but this is the basis. So next time there’s a scary or obscure sounding word, don’t be like old me and ignore it, work to define it. Who knows, maybe you’ll work in that industry some day. 

Is there another term or industry you’d like me to define and explain? Just let me know.