Glossary 1 – Private Equity

Private Equity is considered a financial booster shot for growth companies, and sometimes a financial superhero saving distressed firms. It’s an asset class where investors provide funds to businesses in exchange for ownership or a share in the company. Private Equity firms actively send a team of mentors and experts to help grow portfolio companies, improve their performance, and increase their value, by which ultimately benefits everyone. This is like giving a business a helping hand to expand and create more value. As a result, Private Equity plays a vital role in the national economy by fueling growth, financing innovation, reviving struggling businesses, and boosting overall economic growth. PE investment is a bit like adding turbochargers to the economic engine, creating jobs, innovation, and finally boosting a whole lot of prosperity. It’s basically the economy’s secret sauce for success!