Private Equity is an alternative class of investment that does not trade on the stock exchange. Private Equity funds combine the funds from HNIs and Sovereign funds with institutional investors to invest in private companies. Private Equity is the name given to funds that invest in private companies. Private Equity firms make their money by charging performance fees and management fees to investors in funds. Private Equity firms typically invest for a longer period, i.e. 7-10 years.
