Private equity (PE) is an alternative investment class involving the acquisition of equity ownership in companies that are not publicly traded or taking public companies private. PE firms raise capital from institutional investors and high-net-worth individuals to form funds, which they use to buy controlling or significant stakes in target companies[1][2][3]. These firms then actively work with the companies’ management teams to improve operations, increase profitability, and grow value through strategies such as restructuring, strategic repositioning, product development, and operational efficiency[1][3][5]. Historically, private equity has evolved from simple ownership stakes to sophisticated investment strategies like leveraged buyouts (LBOs), where acquisitions are financed through a mix of debt and equity to amplify returns. More recently, growth equity investments have emerged, focusing on minority stakes in late-stage private companies with less reliance on debt[2]. PE firms typically hold investments for about 4–7 years before exiting via a sale to another company, public offering, or recapitalization, aiming to generate substantial returns for their investors[3][4]. The private equity industry plays a critical role in modern finance by injecting capital and expertise into companies across sectors—from healthcare and technology to energy and hospitality—helping to drive growth, innovation, and job creation[4]. In 2021 alone, PE invested over $1 trillion in U.S. companies, including thousands of small businesses, demonstrating its broad economic impact beyond major metropolitan areas[4]. Notable aspects of private equity include its strategic focus on enhancing company value through governance improvements, revenue growth, margin expansion, and capital structure optimization. PE firms leverage industry knowledge and operational experience to unlock value, often outperforming public markets especially as the number of public companies shrinks[3][5]. This blend of finance, management, and strategic execution makes private equity a vital and dynamic force in business and technology sectors globally.