Difficulties in Terminology of Private Equity
Difficulties in Terminology of Private Equity

Author(s): Tomáš Štofa, Michal Šoltés
Subject(s): Business Economy / Management
Published by: Masarykova univerzita nakladatelství
Keywords: private equity; venture capital; growth capital; definition;
Summary/Abstract: This article is focused on the theoretical definition of private equity capital, which, despite a relatively long history, is not precisely defined. Different entities often use different definitions in this area, which ultimately increases the disharmony of private equity, makes entry of new investors more difficult, and limits the demand for this asset. Even within the European Union, there is an inconsistent definition of private equity capital. We can see differences when comparing the institutional view of the European Union and some companies providing private equity capital. Therefore, we have focused on comparing several views of private equity to create clear definition of this category. Our new view on definition of private equity should adequately reflect the needs of our rapidly changing world and clearly distinguish private equity strategies. The effort to unify terminology is accompanied by highlighting the differences between types of private equity capital.

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