What is Private Equity?
Private Equity (PE) refers to investment capital raised from high-net-worth individuals, institutional investors, or private equity firms to invest directly in private companies (not listed on stock exchanges) or to buy out public companies to delist them.
• PE investors provide capital to companies in exchange for equity stakes.
• The objective is to help companies grow, improve operations, and eventually exit (via IPO, sale, or merger) with profits.
• Typically involves long-term investments with active involvement in management.