Private equity is a type of investment where a group of investors pools their money together to buy a company that is not publicly traded (meaning you can’t buy its stock on a stock exchange).
The goal of the investors is to help the company grow and become more profitable so that they can sell it for more money than they paid for it. They usually do this by making changes to the company’s operations or management to improve its performance.
Private equity investors often buy companies that are struggling or in need of a change in direction. They may also invest in smaller companies that have the potential to grow quickly but need additional resources to do so.
Private equity can be extremely profitable, but risky because there is no guarantee that the company will become more profitable or that it will be easy to sell later on.