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Private equity refers to a type of investment strategy that involves investing directly into private companies or conducting buyouts of public companies that result in a delisting of public equity. Investors in this asset class typically seek to acquire majority control of companies, partnering with management teams to implement operational improvements and financial restructuring to drive growth and maximize value. The goal is to eventually sell the stake at a profit, often through a sale to a strategic buyer or a return to the public markets via an initial public offering (IPO). Private equity firms may also provide capital for expansion, acquisitions, or recapitalizations. Successful private equity investments require a deep understanding of business fundamentals, financial management, deal negotiations, and market dynamics.