Private Equity Funding

Private Equity Funding refers to investments made directly into private companies those not listed on public stock exchanges or in public companies with the intent to delist them from the stock market. This form of funding is provided by private equity firms, venture capitalists, or institutional investors who pool capital to acquire equity ownership in promising businesses. Private equity is often used to: Support business expansion Fund new product development Enable acquisitions or mergers Rescue struggling companies through restructuring In exchange for their investment, private equity investors typically seek: Significant influence over company decisions High returns over a fixed investment period (often 5 to 10 years) An exit strategy, such as a sale or IPO (Initial Public Offering) Private equity plays a crucial role in driving innovation, improving business efficiency, and generating long-term value. Its especially attractive to companies looking for substantial capital without going public or giving up complete control.