PRIVATE EQUITY
Investing in privately held companies to build value and achieve strong long-term returns.
WHAT IS PRIVATE EQUITY?
HOW DOES IT WORK?
FIND OPPORTUNITIES Private equity firms research and identify companies with strong potential but that need capital or improvement.
Private equity means investing in companies that are not listed on public stock exchanges.
These companies can be small businesses, fast-growing firms, or companies that need help to perform better.
The firm invests money in the company and works closely with management to create a plan for growth.
Investors provide money, expertise, and guidance to improve the company's operations, expand, and increase its value.
The company becomes more efficient, expands into new markets, or develops new products and services.
The goal is to sell the company
Slater for a profit or take it public
The firm exits by selling its ownership stake to another buyer or by taking the company public and earns a return.
In the early 2000s, Bain Capital, a private equity firm, invested in Domino's Pizza.
The investment helped Domino's improve its operations, modernize its stores, invest in technology, and strengthen its brand worldwide.
• As a result, Domino's expanded to thousands of stores globally and significantly increased its value. •Domino's went public in 2004, and Bain Capital made a strong profit on its investment.
Private equity invests in private companies, not publicly traded stocks.
Firms look for companies with growth potential or challenges they can help solve.
Investments are long-term, typically lasting buyouts, growth investments, and venture capital.
3 to 7 years or more.
WHY IT MATTERS: Private equity helps companies grow stronger, creates jobs, and drives innovation. It also gives investors the opportunity to earn higher returns over the long term.