Private Equity Fund

A private equity fund is a pool of money collected from institutional investors and wealthy individuals, used to invest directly in private companies or buy out public companies to make them private. The goal is to improve the company's performance and increase its value over several years. Once the value has grown, the fund aims to sell the company at a profit. Unlike public stock markets, these investments are not traded publicly and typically involve longer time horizons, requiring patience and strategic management to achieve substantial returns for investors.