| Topic Name: |
PE vs. VC |
| Message Name: |
The difference is |
| Date Posted: |
04/16/2002 |
| In Reply To: |
between the two.
The name "private equity" gives me the impression it is no different than venture capital: investing in companies not yet public. What's the truth? |
| Message: |
Private equity is an umbrella term that encompasses VC, leverage buyout, mezzanine growth, rollup, etc. Like you said, anything that means holding stock or convertible debt in a company that is not public.
Venture capital is the subset that usually focuses on new companies, not cash flow positive, technology/biotech based, no leverage.
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