Private Equity and Venture Capital

Private Equity and Venture Capital are forms of private financing where investment firms raise capital from accredited investors to acquire ownership stakes in companies not listed on a public stock exchange. Venture Capital, a subset of private equity, specifically focuses on funding early-stage, high-growth potential startups, taking on significant risk in exchange for equity and the prospect of high returns, while often providing mentorship and strategic guidance. Broader Private Equity encompasses a wider range of investment strategies, including leveraged buyouts (LBOs) of more mature, established companies, with the goal of restructuring or improving operations to increase the company's value before exiting the investment through a sale or initial public offering (IPO).