Private Equity Industry

Private equity is stock in a company that is not offered for sale to the general public, held instead by specialized investment funds and limited partnerships that take an active role in managing and restructuring the businesses they invest in. Firms typically operate as a general partner raising capital from institutional limited partners, then combine equity and debt financing to acquire stakes in target companies with a view to an exit, commonly over a four to seven year horizon. The industry encompasses several strategies, including leveraged buyouts financed with significant debt, growth capital investments taking minority stakes in mature companies, venture capital funding for early-stage businesses, investment in distressed securities, and secondary purchases of existing fund interests.