Private Equity

Private Equity refers to investment funds that buy and restructure companies that are not publicly traded on a Stock exchange. These funds raise Capital from Institutional Investors and acCredited individuals to invest in private companies, often taking a controlling interest. The goal is to improve the financial performance and value of the company over time, eventually selling it for a profit through avenues like initial public offerings (IPOs) or sales to other companies.

Examples of private Equity firms include:

• Kohlberg Kravis Roberts & Co. (KKR)
• Blackstone Group
• Carlyle Group

Notable cases include:

• The acquisition of Dell Technologies by Silver Lake Partners and Michael Dell in 2013, which helped the company pivot from a traditional PC manufacturer to a services and solutions provider.
• The purchase of Hilton Worldwide by Blackstone in 2007, which led to significant operational improvements and a successful IPO in 2013.