Private Equity: A Private-Public Investing Relationship Pattern Essay

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The readings discuss the issue of private equity, being an asset for the fundamentals of investment. The paper is aimed at depicting the most significant outline of the readings and their interrelations in the context of the subject of investing.

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Nowadays, the concept of investment cannot exist as an independent economic notion. In order to remain relevant in the market, companies seek collaborations with partners from both the private and public sectors. Large companies tend to invest money in promising smaller companies, meanwhile waiting for governmental support. Such financial circulation drives the investment market towards constant innovation and opportunities created.

The process itself bears the notion of private equity, i.e., investing in a private company with the intention to increase the stake’s value. With the rapid increase in the number of investors interested in private equity, the sphere has encountered a series of both positive and negative trends. Globalization, which helps the investors purchase shares in companies all across the globe, is, by all means, one of the major benefits in today’s economic world. However, the increase in taxes requires cooperation with the public sector, which is interested in investing in projects beneficial for the residents.

Such a collaborative process is also known as Public-Private Partnerships (PPP), as it establishes proper communication between the sectors, thus, creating an economic balance. However, the question here is whether both sides of collaboration benefit to an equal extent. Once the government obtains a share in a private company, the business owners are exposed to a high level of responsibility, whereas the control is mostly taken over by the public sector.

Aimed to create a balanced economic relationship, PPP allows the government to interfere with the companies’ activities. The collaboration, on the contrary, works both ways, as the governors often seek financial support themselves. The example of such cooperation is exposed with the help of a case study depicting the BTS project financing. Hence, it may be concluded that as the collaboration between public and private sectors is often inevitable, the companies and investors should be quite attentive in order to save their money throughout the partnership.

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IvyPanda. (2022, February 11). Private Equity: A Private-Public Investing Relationship Pattern. https://ivypanda.com/essays/private-equity-a-private-public-investing-relationship-pattern/

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"Private Equity: A Private-Public Investing Relationship Pattern." IvyPanda, 11 Feb. 2022, ivypanda.com/essays/private-equity-a-private-public-investing-relationship-pattern/.

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IvyPanda. (2022) 'Private Equity: A Private-Public Investing Relationship Pattern'. 11 February.

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IvyPanda. 2022. "Private Equity: A Private-Public Investing Relationship Pattern." February 11, 2022. https://ivypanda.com/essays/private-equity-a-private-public-investing-relationship-pattern/.

1. IvyPanda. "Private Equity: A Private-Public Investing Relationship Pattern." February 11, 2022. https://ivypanda.com/essays/private-equity-a-private-public-investing-relationship-pattern/.


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IvyPanda. "Private Equity: A Private-Public Investing Relationship Pattern." February 11, 2022. https://ivypanda.com/essays/private-equity-a-private-public-investing-relationship-pattern/.

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