Private equity refers to investment in companies that are not publicly traded on a stock exchange. Private equity firms raise funds from institutional investors, such as pension funds, endowments, and high net worth individuals, and use those funds to acquire ownership stakes in private companies or to provide growth capital to these companies.
Private equity firms typically take an active role in managing their portfolio companies, often with the goal of improving operational efficiency and increasing profitability. This can involve implementing changes in management, restructuring the company's operations, or pursuing new business opportunities.
The ultimate goal of private equity firms is to generate returns for their investors by increasing the value of their portfolio companies, and ultimately selling their ownership stakes at a profit. This can take the form of an initial public offering (IPO), a sale to another company, or a merger with another private equity firm.
No comments:
Post a Comment