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Portfolio Company (PortCo)

Private Equity glossary · Private Equity Fundamentals

Definition

A company in which a PE fund holds an investment.

Portfolio Company (PortCo) in plain English

A portfolio is just the collection of things an investor owns. So a portfolio company — often shortened to "PortCo" — is simply any company that a private equity fund has bought a stake in. The word doesn't describe the company's size or industry; it only signals the relationship: "this is one of the businesses our fund has money in." If the fund is a fruit basket, each PortCo is one piece of fruit sitting in it.

Also called: PortCo

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