FINVIA
Glossary
Glossary
Glossary
Private equity is an asset class in which capital is invested in unlisted companies. It is a form of equity capital where investors invest directly in companies to provide capital for growth, expansion, restructuring or acquisitions. Private equity investors actively participate in the management of the company and work closely with management to increase the value of the company. Private equity investments offer investors the opportunity to invest in companies with high growth potential and potentially attractive returns . However, this asset class is generally long-term in nature and requires a high level of capital commitment.