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Securitization refers to the process of converting illiquid assets, such as loans or mortgages, into tradable securities that can be sold on financial markets. These securities are then backed by the cash flows generated from the underlying assets, providing investors with a means of gaining exposure to these asset classes without having to directly own or manage them. This process is often employed in finance to improve liquidity, diversify risk, and access new sources of capital. In the context of private equity, securitization can be used to monetize portfolios of illiquid assets, such as privately held companies, by pooling them together and issuing securities backed by their cash flows. This can enable private equity firms to realize gains on their investments more quickly and efficiently, while also providing investors with access to alternative investment opportunities.