What does'private equity investor' mean?

When a company wants to raise money for its operations it has some ways, 1. taking a loan from bank, 2. accepting public fixed deposits, 3. issuing debentures or loan bonds 4. issuing preference and/or equity shares.

Within these when the company wants to issue preference or equity shares it can do so either by a. doing an IPO, b. issuing rights shares or c. private placement.

Private placement means that if the amount the company wants to raise is comparitively low and company does not want to incur cost of issue then it may approach few wealthy investors to invest their money in the company. So equity or preference shares are issued to few people at a minimum cost. This is called private placement.

And those who are these wealthy investors are called Private Equity Investors.

Equity investment in a private company that is not listed in a stock exchange.

Beware its a scam email LOL

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