Buyout Capital
Buyout capital refers to funds used to acquire a controlling interest in a company. This type of financing is often used in leveraged buyouts (LBOs), where the acquisition is financed primarily with borrowed funds. Buyout capital is crucial for private equity firms seeking to gain control and improve the operational efficiency of target companies.
Key Takeaways
- Buyout capital is used to acquire controlling interests in companies.
- Common in leveraged buyouts (LBOs).
- Involves significant use of borrowed funds.
- Private equity firms use buyout capital to enhance operational efficiency in target companies.
