Private Equity 

Private Equity (PE) refers to a class of investment in privately held companies — those not listed on public stock exchanges — through direct equity investments, buyouts, or strategic funding rounds. Private equity firms pool capital from institutional investors, pension funds, family offices, and high-net-worth individuals to acquire ownership stakes in companies with the aim of improving operational performance, scaling revenues, and eventually realizing returns through strategic exits such as Initial Public Offerings (IPOs), mergers, or acquisitions. 

Private equity typically operates through limited partnerships (LPs), where the private equity firm acts as the General Partner (GP), making investment decisions, while investors contribute capital as Limited Partners (LPs). PE investments are known for being long-term, illiquid, and high-risk but potentially high-reward, often focused on sectors like healthcare, technology, consumer goods, and industrial services. 

There are different types of private equity strategies: 

• Venture Capital (VC): Early-stage investments in high-growth startups. 

• Growth Equity: Investments in mature companies seeking capital to expand operations. 

• Buyouts: Acquiring controlling stakes in established companies, often using leverage (debt). 

• Distressed Assets: Investing in underperforming or financially troubled companies for turnaround.