Private Equity

Private equity is an alternative investment class and consists of 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. Generally speaking private buyout, growth and venture funds are all private equity investments. Institutional and HNW 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. In the U.S., due to regulations, individuals need to fit the Accredited Investor and Qualified Purchaser status in order to invest in private equity funds.