What is PE?
PE, or Private Equity, refers to investments in private companies that are not publicly traded. It involves raising capital from institutional investors (banks, insurance companies, pension funds, etc.) or high-net-worth individuals to support businesses in their growth, transformation, or succession.
Private equity funds deploy capital through various strategies:
- Venture Capital: Investing in startups to support early-stage growth.
- Growth Equity: Financing mature companies to accelerate expansion.
- Buyout (LBO – Leveraged Buyout): Acquiring companies, often using debt leverage.
- Turnaround/Distressed Investing: Restructuring and revitalizing struggling businesses.
The goal of private equity is to create long-term value and generate returns by eventually exiting investments through IPOs, strategic sales, or secondary buyouts.
The Key Stakeholders in Private Equity
Private equity glossary
A Growth Lever for Entrepreneurs
Entrepreneurs and private equity have a crucial relationship, especially in financing and supporting growing businesses. Here’s how these two worlds interact:
Discover Our Financing Kit
Funding Toolkit: Essential Steps for SME Growth