What is Private Equity?

Private equity is a form of financing where capital is invested in a company that is seen to have the potential for growth. Private equity firms typically invest in privately-held companies and/or assets which aren’t traded on public markets.  Founders will look to private equity firms for assistance typically when they are looking for both capital as well as expertise in how to manage and grow their business.  The funds raised from private equity are used either to grow the business, or to liquidate founders who may be interested in cashing out.