Private equity (PE) financing is money invested by PE firms in privately owned businesses. PE financing is often used to buy out some or all of the ownership interests of the owners of a business (target company). PE firms often use debt to finance these buyout transactions—with the target company taking on significant loans to secure the money (capital) to buy out the current owners of the business. The target company must, of course, pay back these loans from its lenders, with interest. Because of this use of debt financing, these buyouts have traditionally been called leveraged buyouts (LBOs).

In Oregon, as in other states, private equity (PE) financing is a common method for funding the acquisition or expansion of privately held businesses. PE firms provide capital in exchange for equity in the target company, and this process often involves leveraged buyouts (LBOs), where the acquisition is largely funded through debt. The target company assumes this debt, which it is responsible for repaying with interest. The regulatory framework for such transactions includes both state and federal laws. At the federal level, PE firms are generally subject to regulations by the Securities and Exchange Commission (SEC), particularly if they manage funds over a certain size, requiring registration as investment advisers under the Investment Advisers Act of 1940. Additionally, the Dodd-Frank Wall Street Reform and Consumer Protection Act imposes further regulations on PE firms. At the state level, Oregon securities laws, as outlined in the Oregon Securities Law (ORS Chapter 59), regulate the offer and sale of securities within the state and require compliance with registration and anti-fraud provisions. It's important for PE firms and target companies to ensure that their transactions comply with applicable securities laws and to consider the implications of taking on significant debt in LBOs.