Private equity(PE) typically refers to, generally organized as, that buy and restructure companies. More formally, private equity is a type ofand one of theconsisting ofand debt in operating companies that are not publicly traded on a.
A private-equity investment will generally be made by a, afirm or an. Each of these categories of investors has its own set of goals, preferences and investment strategies; however, all provideto a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.
Common investment strategies in private equity include,,,and. In a typical leveraged-buyout transaction, a private-equity firm buys majority control of an existing or mature firm. This is distinct from a venture-capital or growth-capital investment, in which the investors (typically venture-capital firms or angel investors) invest in young, growing or, but rarely obtain majority control.
Private equity is also often grouped into a broader category called “private capital”, generally used to describesupporting any long-term,