Fiduciary Duties in Private Equity (Part 3)

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Minority interests, also known as minority investment, refers to the non-controlling share in a company held by an investor or another company. It is an ownership stake of less than 50% in a Company and does not otherwise have a controlling interest. This position held gives the investor no influence or an insignificant amount of influence on how the company is run.

Ownership in a private equity arrangement can either be:

– Minority passive interest
– Minority active interest
– Majority stake