Private Equity (PE)

Private equity refers to off-market equity capital that is typically invested in established companies via closed-end funds. Majority or significant minority stakes are typical, along with a holding period of usually four to seven years and an active approach to value creation.

Private equity investors regularly pursue a combination of operational improvements, buy-and-build strategies and optimisation of the financing and capital structure. The aim is to develop the company strategically and operationally during the holding period and to increase enterprise value sustainably through to the exit.