Private equity (PE) is an investment strategy centered on acquiring, managing, and eventually selling whole or pieces of established companies to enhance their value and generate returns for investors.
Private equity firms raise capital from institutional investors, high-net-worth individuals, and various other sources.
To drive value creation, private equity firms employ diverse strategies, including cost-cutting measures, operational enhancements, and strategic acquisitions. PE investments can take various forms, such as leveraged buyouts (LBOs), growth equity investments, distressed debt acquisitions, and venture capital.
Unlike some other investment strategies, private equity has a longer investment horizon, emphasizing the pursuit of long-term value.
Private equity recruiting is typically more common for candidates with prior experience, and the process often includes interviews for pre-MBA associate roles during specific recruiting cycles. It often serves as an exit opportunity for professionals from investment banking, highly valuing transaction experience.
