Private equity financing | Meaning & explanation

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Introduction
Total capital invested in private equity varies from year to year. In 2022, the entire private equity market was worth nearly $5 trillion. About $1 trillion of that was not invested. In the long run, interest in private equity is constantly increasing. For example, there are now more than 18,000 different funds. That's a 60% increase over the past 5 years.

What is private equity?
The meaning of private equity is: a form of financing in which dubai mobile numbers list investment companies or private investors invest directly in companies that are not publicly traded.

The goal of private equity for investors is to create value for the company or startup through financial support, management expertise and strategic guidance. The companies must then then use these resources to pursue growth, business improvement or some other form of value creation.

These types of investments can range from providing growth capital to promising start-ups to executing management buyouts or buy-ins at established companies. Private equity investors expect a high return on their investment at the eventual sale or exit of the company.