Private Equity
Capital invested in non-public companies, often for growth or restructuring.
Detailed Description
Private Equity
What is private equity?
Private equity refers to investment funds not listed on public exchanges, raised from institutional investors and high-net-worth individuals to acquire or invest in companies.
What are the main types of private equity?
The main types include venture capital, growth capital, buyouts, distressed investments, and mezzanine financing.
What is the typical structure of a private equity fund?
Private equity funds are typically structured as limited partnerships, with the private equity firm as the general partner and investors as limited partners.
What are some risks associated with private equity investments?
Risks include illiquidity risk, market risk, operational risk, and valuation risk.
What are common exit strategies for private equity firms?
Common exit strategies include initial public offerings (IPOs), secondary sales, and recapitalization.