The Private Equity and Venture Capital (PEVC) Model

The Private Equity and Venture Capital (PEVC) model involves investing funds into private companies—either mature ones (private equity) or startups (venture capital)—to help them grow or improve operations. Investors provide capital in exchange for ownership stakes, aiming for high returns when these companies succeed or are sold. PEVC firms actively manage these investments, often making strategic changes, and typically seek to exit within several years through sales or public offerings. This model helps businesses scale or turn around, while investors hope to profit from successful outcomes.