Private equity

Private equity

Private equity is a type of investment where investors, often institutional or high-net-worth individuals, provide capital to privately held companies in exchange for ownership stakes. These investments are typically made by private equity firms. Private equity firms actively manage and seek to improve the performance of the companies they invest in. They may aim to increase the value of the companies over time and eventually exit the investments through means like selling them or taking them public. Private equity investments can involve various industries and strategies, such as buyouts, growth capital, and distressed asset acquisitions.