private placement

A group of people or institutions providing equity or debt capital to a company. Private placements are privately offered and are restricted to qualified individuals, which typically means individuals with a net worth of at least $1 million. Those investing in the private placement consist of a relatively small group of people or companies, in contrast with public offerings that are sold to thousands of investors. Private placements don’t have to be registered by the Securities and Exchange Commission. One advantage of the pri-vate placement market is that it offers confidentiality.