Platform Investment
Private Equity glossary · Private Equity Fundamentals
Definition
The initial portfolio company acquired in a roll-up strategy; subsequent add-ons are integrated into the platform.
Platform Investment in plain English
A "roll-up" strategy is when investors buy one company and then buy up a bunch of similar smaller companies to bolt onto it, building one big business out of many little ones. The platform investment is that very first company — the foundation everything else gets stacked onto. The later purchases, called add-ons, get folded into the platform's systems, brand, and management. Picture buying one solid pizza shop with a good kitchen and back office, then buying up five neighborhood shops and running them all through that first shop's setup — the original is the platform, the rest are add-ons.
Related Private Equity terms
Private Equity practice questions · Private Equity flashcards · Private Equity study guide