Private equity is an area of the Investment industry that involves investments in private companies, or companies that aren’t traded on the public stock market. The investment into private companies is referred to as private equity. Here we include the entire asset class of equity investments that are not quoted on stock markets. Private equity stretches from venture capital (VC)—working with early-stage companies that may be without revenues but that possess good ideas or technology—to growth equity, providing capital to expand established private businesses often by taking a minority interest, all the way to large buyouts (leveraged buyouts, or LBOs), in which the private equity firm buys the entire company.
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