Buyout fund

A buyout fund is a type of investment fund that pools money from investors to purchase entire companies, often with the goal of improving their performance and eventually selling them for a profit. These funds typically buy mature or underperforming businesses, restructure management or operations, and aim to increase their value over several years. The goal is to generate high returns for investors through strategic enhancements and eventual sale or exit of the company. Buyout funds are common in private equity, focusing on larger deals, and involve active management to maximize investment outcomes.