A portfolio company is a company or entity in which a venture capital firm, a buyout firm, or a holding company invests. All companies currently backed by a private equity firm can be spoken of as the firm’s portfolio.
A company may create a portfolio to showcase the capabilities and strengths of the business's services. The portfolio is a collection of the products, services and achievements of the company. The goal of a company portfolio is to create a presence of the business on the market, attract more customers and to show how the business differs from its direct competitors on the market. The company portfolio is also used as a business strategy to show the growth of the company to attract potential investors and shareholders.
- Smith, Kenneth; Lajoux, Alexandra Reed (2012). "Chapter 1: Building and Managing a Portfolio of Businesses". The Art of M&A Strategy: A Guide to Building Your Company's Future through Mergers, Acquisitions, and Divestitures. New York, Chicago, IL and San Francisco, CA: McGraw Hill Professional. p. 9. ISBN 978-0-07-176016-4.
- American Institute of Certified Public Accountants (2019). "The Portfolio Company's Strategy and Positioning". Accounting and Valuation Guide: Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies. Durham, NC: John Wiley & Sons. p. 27. ISBN 978-1-948306-62-1.