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 Wyoming, private equity (PE) financing operates under the same general regulatory framework as it does at the federal level and in other states, with specific state statutes that may apply to business transactions within the state. PE firms invest in privately held companies, often to acquire ownership stakes through buyouts. These transactions frequently involve leveraged buyouts (LBOs), where the acquisition is financed through significant debt that the target company assumes. The target company is then responsible for repaying this debt, along with any accrued interest. Wyoming does not have specific statutes that uniquely regulate the structure of PE financing or LBOs; instead, these transactions are governed by general corporate law, securities law, and contract law, as well as applicable federal regulations such as those enforced by the Securities and Exchange Commission (SEC). It is important for companies engaging in such transactions to ensure compliance with all relevant laws, including those related to securities, corporate governance, and lending practices. An attorney with expertise in corporate finance and securities law would be able to provide guidance tailored to the specifics of a PE financing deal in Wyoming.