Glossary

Private equity is a type of investment that involves providing capital to private companies or buying out public companies with the intention of making them private. This type of investment is typically made by private equity firms, venture capital firms, or high-net-worth individuals. 💰

The goal of private equity investments is to improve the company's performance and eventually sell it for a profit, either through an initial public offering (IPO) or a private sale.

For example, a private equity firm might invest in a small but promising technology company, providing capital and strategic guidance to help the company grow, and later selling its stake for a significant return.

Fun fact: Private equity has produced some of the most successful investment stories, such as the growth of companies like Apple and Google, which were backed by private equity firms in their early stages. 🌟 These investments have the potential for high returns but also carry significant risks, as many startups fail to achieve long-term success.