private finance initiative (PFI)

Definition

A system of generating financing through private ventures to fund things like infrastructure and similar long-term capital investments. Within a private finance initiative, the contracting company's services are leased to a specific municipal organization that in turn pays for those services over the course of the established and often lengthy agreement. For example, private finance initiatives are often used to fund the building and management of prisons by the private sector.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
private equity offering private funds