Private equity investments are investments made into companies that are not publicly traded on a stock exchange.These investments are typically made by private equity firms, which are investment firms that pool money from investors to invest in private companies.Private equity investments can be made in a variety of forms, including equity, debt, and mezzanine financing.Equity investments are investments in the ownership of a company, while debt investments are loans that must be repaid.Mezzanine financing is a hybrid of equity and debt, and typically involves a loan that is convertible into equity.
Private equity investments can be an important source of capital for companies that are looking to grow and expand.These investments can also provide investors with the potential for high returns.However, private equity investments are also risky, and investors should be aware of the risks before investing.The historical context of private equity investments dates back to the 19th century, when wealthy individuals and families would invest in private companies.In the 1980s, private equity investments began to be made by institutional investors, such as pension funds and endowments.Today, private equity investments are a major asset class for many institutional investors.