What is a PE fund? private Equity within private markets private Equity is a broad asset class within the private investment markets such as Equity debt real estate infrastructure art Etc where investors buy a share of a private company, which is not freely tradable on any public marketplace with a view of generating a return through dividends capital appreciation or both over finite period of time the investee company can vary in its size location sector or area of specialization. Most Capital used by private Equity firms comes from third-party investors private Equity has a simple model biased in a company improve the business and sell it after a limited holding period Most private Equity managers will focus on a particular subdivision of the private Equity Marketplace such as leverage buyouts which involve large Acquisitions of more mature companies significantly financed by debt.

Venture Capital where the investor targets younger companies with high growth potential growth Capital which involves purchasing a minority or non-controlling stake in more mature companies distressed turnarounds where the aim is to identify companies which are currently undervalued due to Temporary cash flow problems while any investment in a private company buy a party would qualify as private Equity formal or professional private Equity is typically in the form of professionally managed private Equity Funds advised by highly Specialized intermediaries or private Equity firms.

Private Equity as an asset class serves as a means to generate returns for investors through value Creation in investee companies historically these returns have been some of the most attractive in the financial markets and regularly outperform public markets were listed Securities are freely traded on exchanges. However, these returns come over longer period of time during which an investor cannot pull out their capital and for larger minimum investment amounts.

Players within the private Equity industry can be private funds that invest pooled third-party Capital family offices Sovereign wealth funds investing on behalf of a state or country financial institutions such as a pension fund or endowments corporations investing either directly or through Strategic investment arms and even individuals who usually have a high net worth.