Private Equity Funds

Private equity funds are investment pools that gather money from wealthy individuals and institutions to invest in private companies or buyout public companies, often aiming to improve their performance and eventually sell them for a profit. These funds typically hold investments for several years, during which they work to enhance the companies’ operations, streamline costs, or expand their market reach. Investors in private equity funds generally receive returns through the sale of these companies, but the investments are illiquid, meaning they cannot be easily sold or exchanged.