Private equity (PE) refers to investment funds that buy and manage private companies or take public companies private with the goal of improving their value and selling them at a profit. These investments are typically made by institutional investors, high-net-worth individuals, and private equity firms.

Private equity firms raise capital from investors, known as limited partners (LPs), and invest in businesses that they believe have strong growth potential. They often restructure, improve operations, or expand these companies before selling them or taking them public to generate returns for investors.

Private equity investments are generally illiquid, long-term, and there is risk involved. We leverage decades of knowledge and experience when choosing companies to invest in to give investors the best chance possible of realizing gains from their investments. Investors should be aware that: Capital can be locked up for several years. Returns are not guaranteed, and losses can occur. Market conditions and business performance affect investment outcomes.

Unlike public stocks, private equity investments are not traded on stock exchanges. Instead, investors commit capital for extended periods, allowing PE firms to take a more hands-on approach in managing businesses. Private equity also typically offers higher potential returns which comes with a greater risk and lower liquidity.

Private equity is generally limited to accredited investors, institutional investors, and high-net-worth individuals due to the high capital requirements and risk levels.