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A brief recap of private equity

The Edge Singapore
The Edge Singapore  • 4 min read
A brief recap of private equity
Blackstone, one of the largest private equity firms Photo Credit Bloomberg
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Private equity (PE) refers to investment funds that buy and manage private companies, aiming to improve their value before eventually selling them for a profit. Unlike public companies whose shares are traded on stock exchanges, private companies are not available for public trading. Although the Singapore market was among the best performers last year because of the local banks, the delistings are increasing at an alarming pace.

Since the start of the year, three companies have proposed privatisations, including the sponsors of Paragon REIT whose market capitalisation is $2.79 billion.

 Parts of PE are becoming accessible to high net-worth individuals and accredited, and most recently to retail investors via the Astrea bonds.

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