Private Equity Funds

Definition:

Private equity funds (PE funds) invest in privately held companies with the aim of increasing their value and exiting at a profit.

Details:

PE funds pool capital from institutional and private investors to acquire majority or minority stakes in businesses.

• Typical holding period: 4–7 years
• Focus on growth, efficiency, and profitability
• Exit strategy via sale, IPO, or merger

Relevance in a transaction context:

PE funds are relevant buyers for entrepreneurs – bringing capital, operational expertise, and strategic networks. However, they usually follow clear return targets and defined exit strategies.