Firstly: what is private equity?
Private equity (PE) refers to investments made into private companies (those not listed on public stock exchanges) or the acquisition and privatization of public companies, with the aim of improving their operations, growth, or profitability before eventually selling them for a profit.
Private equity investing is split into a few major categories, which we will outline below: buyout, growth equity, venture capital, infrastructure, secondaries and distressed credit. Firms are run by investment teams–those that are in charge of the investments and fund portfolios are referred to as general partners (GPs), and those that provide capital for the funds are referred to as limited partners (LPs).