The term private equity (PE) is reserved explicitly for securities when the equity capital raised for
companies come from private placement issues and not via public offerings.
These securities are sold directly to institutions or accredited investors such as high-net-worth individuals and families. PE represents an important asset class that has received quite a lot of attention from pension plans, firms, family offices, and various investors in the private wealth market.
An investment structure established as a PE fund will undertake investment activities in many pooled investments. Investors buying into a PE investment will invest indirectly in a pool of investment activities the PE fund is undertaking. The underlying investment activities a PE fund can be involved in range from:
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