Which type of investment is associated with providing finance to growing companies with the objective of exiting via a profitable stock market listing?

Which type of investment is associated with providing finance to growing companies with the objective of exiting via a profitable stock market listing?
A . Convertible bonds
B . Preference shares
C . Private equity
D . Structured products

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Answer: C

Explanation:

Private Equity and Growing Companies:

Private equity involves investing in privately-held companies with the goal of increasing their value and exiting through a stock market listing (IPO) or sale.

This investment type targets growth-stage businesses requiring significant capital.

Elimination of Other Options:

A: Convertible bonds are debt instruments, not equity investments.

B: Preference shares provide fixed dividends and are not growth-oriented investments.

D: Structured products are financial instruments tied to underlying assets and not specific to growth financing.

Reference: ICWIM Module 3: Coverage of private equity investments and their objectives.