Private equity firms invest in privately held companies for growth from "summary" of Financial Markets and Institutions, Global Edition by Frederic S. Mishkin,Stanley G. Eakins
Private equity firms are known for investing in privately held companies with the aim of achieving growth. These firms typically raise funds from institutional investors, such as pension funds and endowments, as well as wealthy individuals. The funds raised are then used to acquire equity stakes in companies that are not publicly traded on stock exchanges. Once a private equity firm has acquired a stake in a company, it often takes an active role in the management of the business. This can involve providing strategic guidance, implementing operational improvements, and helping the company to expand into new markets or industries. By doing so, private equity firms aim to increase the value of their investments over time. Pr...
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