Image for portfolio companies

portfolio companies

Portfolio companies are businesses that are owned or invested in by a larger firm, often a private equity or venture capital company. These firms manage a collection of investments, known as a portfolio, which can include startups, established companies, or a mix of both. The goal is to grow these companies to increase their value, ultimately providing a financial return when sold or taken public. Essentially, portfolio companies are the individual players in the broader strategy of investment firms to achieve profitability and growth.