1. A financing method where a company uses borrowed funds (debt) in addition to equity to finance acquisitions, operations, or investments, amplifying potential returns but also increasing financial risk
The private equity firm used leverage financing to acquire the company with minimal equity investment.
A empresa de private equity usou financiamento alavancado para adquirir a empresa com investimento mínimo de capital próprio.
2. A capital structure strategy that involves taking on debt to multiply the effect of equity investments
Leverage financing allowed the startup to expand operations faster than using only retained earnings.
O financiamento alavancado permitiu que a startup expandisse operações mais rapidamente do que usando apenas lucros retidos.