Private Equity

Private equity refers to capital investment made into companies that are not publicly traded on a stock exchange. This form of financing involves funds and investors that directly invest in private companies or engage in buyouts of public companies, delisting them from public exchanges. Private equity firms typically raise capital from institutional investors and high-net-worth individuals, which they then use to acquire controlling stakes in target companies with the aim of improving their operations and increasing their value over a holding period, usually several years, before exiting the investment.