Private equity in the 2020s

History of private equity and venture capital

Early history
(origins of modern private equity)
The 1980s
(leveraged buyout boom)
The 1990s
(leveraged buyout and the venture capital bubble)
The 2000s
(dot-com bubble to the credit crunch)
The 2010s
(expansion)
The 2020s
(COVID-19 recession)
v t e

In the 2020s private equity firms needed to respond to the COVID-19 recession. In the early 2020s private equity funding exploded.^[1] Private equity firm Silver Lake was involved in the costly 2020 acquisition of Twitter by Elon Musk.^[2] The World Economic Forum suggested private equity would fund the post-recession revival of the economy.^[3]

References

^ "McKinsey's Private Markets Annual Review | McKinsey". www.mckinsey.com. Retrieved 2023-03-17.
^ Lunden, Ingrid (2020-03-09). "Silver Lake makes $1B investment into Twitter; Twitter, Elliott call truce as Dorsey remains CEO". TechCrunch. Retrieved 2022-11-27.
^ "3 reasons why private equity will enable post-pandemic economy". World Economic Forum. 27 January 2022. Retrieved 2022-11-27.

Private equity and venture capital

Investment types

Buyout
- Leveraged
Venture
Mezzanine
Growth
Secondaries
Equity co-investment

History

Terms and
concepts

Buyout	Financial sponsor Management buyout Divisional buyout Buy–sell agreement Leveraged recapitalization Dividend recapitalization
Venture	Angel investor Business incubator Post-money valuation Pre-money valuation SAFE Seed money Startup company Venture capital financing Venture debt Venture round
Structure	Private equity firms and funds Limited partnership Limited liability company Carried interest Management fee Pledge fund Publicly traded private equity Business Development Company Venture capital trust Private investment in public equity (PIPE) SPAC