What is Private Equity (PE)?

Private equity involves investment in private companies that are more mature than venture capital targets. PE funds typically acquire controlling or significant stakes in established businesses with the aim of improving operations and selling for a profit.

Types of Private Equity: - Buyout - Acquiring controlling stakes in established companies - Growth equity - Minority investments in profitable, growing companies - Distressed - Investing in troubled companies for turnaround - Secondaries - Buying existing PE fund interests

Typical PE Fund Structure: - 10-year fund life - 5-year investment period - Concentrated portfolio (10-20 companies) - Target returns vary by fund and strategy (not guaranteed) - Active operational improvement

Key Differences from VC: - Later stage, more mature companies - Often majority control positions - Use of leverage (debt) to enhance returns - Focus on operational improvement - Lower failure rate but also lower upside

PE funds often qualify for the AIP visa program, particularly growth equity strategies.