Private equity (PE) firms invest large sums to buy significant — often controlling — stakes in established companies, aiming to improve and eventually sell them for a profit. Compared with venture capital, PE targets mature, cash-generating businesses.
Where in the journey
Mature, profitable.
What the money is for
Acquire, optimize, and grow established businesses.
Common investors
Private-equity firms, buyout funds.
Watch out for
Loss of control; leverage (debt) used in buyouts adds financial risk.