An organisation whose purpose is to invest its assets or those held in trust for others, for example, pension funds and investment funds. Institutional investors may be involved in management buy-outs. They provide the majority of the investor finance but do not take an active role in the management of the company.
USA
Also known as institutional lenders.
This refers to organizations whose primary purpose is to invest their own assets or those entrusted to them by others. Typical institutional investors are banks, employee pension funds, insurance companies and mutual funds.
Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.