2024年08月03日（土）

A private equity firm buys an ownership stake in a company that is not listed publicly and then is able to turn the business around or increase its size. Private equity firms usually raise funds through an investment fund that has a defined structure and distribution plan and invest that money into the target companies. Limited Partners are the investors in the fund, while the private equity firm is the General Partner, accountable for buying selling, buying, and managing the targets.

PE firms are often accused of being ruthless and pursuing profits at any cost, but they are armed with years of management experience that allows them to enhance the value of portfolio companies through improving operations and other functions. For example, they can guide new executive teams through the best practices in financial and corporate strategy and assist in implementing streamlined accounting procurement, IT, and systems to reduce costs. They can also boost revenue and find operational efficiencies, which can help them improve the value of their assets.

Private equity funds require millions of dollars to invest, and it can take years to sell a company with a profit. In the end, the market is extremely inliquid.

Working at a private equity firm usually requires previous experience in banking or finance. Associate entry-level associates are look here mostly responsible for due diligence and finance, while senior and junior associates are accountable for the interaction between the clients of the firm and the company. In recent years, the compensation for these positions has increased.