A term which covers a range of transactions in which the source of finance is usually a fund established to invest specifically in unquoted securities rather than in publicly quoted securities or government bonds. The range of transactions encompassed by the term depends on geographic region. In Europe, private equity covers the entire range of the investment sector so includes venture capital (www.practicallaw.com/1-107-7540) and management buy-ins (www.practicallaw.com/6-107-6802) and management buyouts (www.practicallaw.com/4-107-6803). In the US, private equity and venture capital are treated as separate types of investment.