Private Equity & VCBeginner
Private Equity
PE
Investment in companies that are not listed, usually taking a large stake to improve and later sell them.
Detailed explanation
PE funds raise money from institutions, buy significant or controlling stakes in mature businesses, work on operations and exit in roughly 3–7 years. In India, these funds are regulated as Alternative Investment Funds (AIFs) by SEBI.
Why it matters
PE is a major source of capital and a popular career path after investment banking.
Key points
- Growth, buyout and distressed strategies.
- Returns via IRR and MOIC.
- Regulated as AIFs in India.
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.