Private Equity (PE) involves direct investment in private companies or the buyout of public companies, converting them into private entities. Unlike publicly traded stocks, PE investments are not listed on public exchanges. Investors in this asset class include private equity firms, venture capital firms, and angel investors, each with distinct goals and strategies.
Private equity injections provide working capital for companies to support growth, develop new products, or undergo operational restructuring. The overarching goal is to significantly enhance the value of smaller-sized firms through strategies like improving efficiency, driving growth through investments or acquisitions, and refining strategic planning.