Private equity describes the investment of equity capital in private companies. Private equity firms purchase ownership stakes in these private companies that are specifically not listed on a stock exchange. The hope for these firms is an increase in value of the purchased equity stakes.
The private equity industry manages $7.5 trillion in assets and owns companies that employ more than 11.7 million American workers, plus millions more around the world. While the world and the global economy continue to struggle with the COVID-19 pandemic, private equity firms have been buying companies at a record pace. As private equity firms and deals have grown, they have come to impact growing numbers of workers.
PESP focuses not only on private equity but also other similarly structured private funds investments:
- Private equity
- Private real estate
- Private infrastructure
- Private debt
- Venture capital
- Hedge funds (when they act like private equity)