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Private Equity Firm from WikiPedia:

A private equity firm is an investment manager that makes investments in the private equity, i.e. an equity security publicly traded, of operating companies through a variety of loosely affiliated investment strategies including Leveraged Buyout, Venture Capital and Growth Capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.

Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions. Private equity firms will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed.

Private equity firms, with their investors, will acquire a controlling or substantial minority position in a company and then look to maximize the value of that investment. Private equity firms generally receive a return on their investments through one of the following avenues:

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