Private Equity

Building Stronger Businesses Through Strategic Investment

Private equity is an investment model where firms invest in private companies or take public companies private to improve their performance and increase value. These investments are typically long-term and focus on business growth, efficiency, and profitability.

One distinctive feature of private equity investments is the use of leverage. Private equity firms frequently borrow money to finance their acquisitions, a strategy known as a leveraged buyout (LBO). This approach allows them to amplify their returns but also increases the risk associated with the investment.

How Private Equity Works

Private equity firms raise funds from institutional investors and high-net-worth individuals. They acquire companies with strong potential, actively manage them, and implement strategic improvements. The goal is to exit the investment through a sale, merger, or IPO at a higher valuation.