
The Basics of Private Equity Investment
What is Private Equity?Private equity refers to investments made into privately-held companies. These investments are made by private equity firms looking to acquire a stake in a company in return for capital. Unlike publicly traded companies, private equity firms do not sell shares of the company on the public stock market.How Does Private Equity Work?Private equity firms raise funds from investors, such as pension funds, endowments, and wealthy individuals, to invest in private companies. Once the funds are raised, the private equity firm will then seek out investment opportunities in companies with growth potential. They will acquire a stake in the company and work closely with the management team to implement strategies that will help the company grow and increase its value. This may involve making operational improvements, strategic acquisitions,…