To the uninitiated, private capital markets like venture capital and private equity can be dauntingly confusing. Buyouts, secondary buyouts, secondary transactions, carveouts, leveraged recaps, dividend recaps, plain old recaps—the list goes on and on. And that's just private equity.
In an effort to provide some basic outlines of the VC and PE industries and how they operate, PitchBook has published several educational briefs on our blog written with PE and VC beginners in mind, with more briefs to come. We also touch on more advanced topics like public market equivalents (PME) benchmarking metrics. Our latest overview takes a quick look at dividend recaps, the maligned but profitable tool used by PE firms to partially recoup their investments. To read this article, or check out other educational briefs put together by our caffeinated, indefatigable team, click here.