Private equity (PE) is a form of investment that involves direct investment into private companies, or the [[buyout]] of public companies to take them private, typically by private equity firms or funds. These investments are made with the intention of gaining significant control or full [[ownership]] of companies, allowing investors to implement strategies for improving performance, driving growth, and ultimately selling the investment for a profit. PE firms raise capital from institutional investors and [[high-net-worth individuals]], pooling this capital into funds that are used to acquire stakes in companies across various industries. The investment horizon is usually [[long-term]], ranging from 4 to 7 years, as it often takes time to implement changes and realize the value through an exit strategy such as an [[IPO]], sale, or recapitalization. Private equity firms aim to add value through operational improvements, financial restructuring, and leveraging industry expertise. Examples: Ranked by assets under management (AUM) in 2024: 1. **[[Blackstone Group]]** - A leader in global investment, known for its significant AUM and diverse investment portfolio. 2. **[[Apollo Global Management]]** - Renowned for its contrarian and opportunistic investment approach across credit, private equity, and real assets. 3. **[[KKR & Co.]]** - Distinguished for pioneering the leveraged buyout model and its expansive global investments. 4. **[[Carlyle Group]]** - Specializes in various sectors, offering deep industry expertise and a global network. 5. **[[CVC Capital Partners]]** - Focuses on private equity and credit, with a strong presence in Europe and Asia.