Equity carve-out

Okay, imagine you have a big piece of cake. The cake represents a company. Now, imagine that the company needs some money to do things like expand or pay off debts. One way they can do that is by selling a small piece of the company to investors.

This small piece is called an equity carve-out. It's like taking a slice of cake and selling it to someone. The company gets some money, and the investors who buy the slice of cake become part owners of the company.

Now, the investors who own this slice of cake can sell it to other people if they want to. And since the company is doing well, the slice of cake is worth more than when it was first sold. So the investors can make a profit on their investment.

But, the company still owns the rest of the cake. They're just sharing a little piece of it with the investors. And they can still make all the decisions about the company. They just have some new shareholders to answer to.

So, an equity carve-out is a way for a company to raise money by selling a small piece of the company to investors, while still retaining control of the overall company.