What do you call a company that own/run or invest in different companies?

Question

Let's say I started this company, whose main purpose is to invest and/or own other companies. For instance, BG enterprise is the company and let's say it owns a "main-stream" blog, real estate company, and a flea market, what would BG enterprise be considered as? Could it be considered a venture capital firm, an investment firm, or what? Remember the main purpose of bg enterprise would be to own or invest in other companies..

Answer 1

It would be a Holdind or unit trust company.

Answer 2

Venture Capitalists if you just invest.

Holding Company if you own.

Answer 3

A great example of a company like this is Berkshire Hathaway; they either own or invest in a wide range of companies including Florsheims, Coca Cola, various Newspapers, GEICO, other insurance firms, etc...  The main purpose of the company is to purchase (buy entire company) or invest (primarily by buying shares) in undervalued companies.

Berkshire Hathaway is usually described as a "Diversified Company" or ocassionally as a "Conglomerate".

Answer 4

investment trust, unit trust, OEIC,ETF, incubator fund

Answer 5

Holding company

Answer 6

I believe you are referring to a private equity firm.  To understand what a private equity firm is you essentially need to know three basic definitions. Equity is the value of an asset less any associated liability. Private equity is the equity in an asset that isn't freely tradeable on the public stock market. A private equity firm is the controlling partner in a collection of partnerships that have come together to pool their capital and invest in an investment opportunity.

While private equity firms may focus on a variety of investment strategies, including drumming up venture capital, they often buy undervalued or under-appreciated companies, improve them, and then sell them for a profit, sort of like house flipping but in the commercial setting.