• E-mail Address : mail.capitalfinvest@gmail.com

What is Private Equity?

Private equity is capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, expand working capital, and to bolster and solidify a balance sheet.The fee structure for private equity firms typically varies but usually includes a management fee and a performance fee.

Take a live Video Tour of Our Campus

Frequently asked quastions

Private equity is capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.

The vehicle of choice for a private equity fund is a limited partnership. It is not the only choice—Luxembourg and France, for example, both offer alternative structures—but for a private equity fund being set up in the US, the Cayman Islands, the Channel Islands or the UK, a limited partnership is most common.

Private equity companies manage funds, which typically invest in unlisted companies or real estate. There are several stages in the private equity investment process starting from collecting capital for the fund and ending with returning committed capital and realized returns to fund investors.

Both private equity and investment banking aim toward the same goal, but from opposite directions. Private equity firms collect high-net-worth funds and look for investments in other businesses. Investment banks find businesses and then go into the capital markets looking for ways to raise money from the investment crowd.