What are the key differences between private equity and public equity?

What are the key differences between private equity and public equity?

Private equity involves investing in private companies, while public equity refers to investing in publicly traded companies. Private equity often requires a longer investment horizon and can involve more active management.

What are the advantages of investing in private equity?

Investing in private equity can offer higher potential returns, access to unique investment opportunities, and the ability to influence company management.

Are there any risks associated with private equity?

Yes, risks include illiquidity, higher fees, and the potential for loss if the company underperforms or fails.

How does the liquidity differ between private and public equity?

Public equity is generally more liquid, allowing investors to buy and sell shares easily. Private equity investments are less liquid, often requiring a longer commitment.

Can you give examples of private equity firms?

Sure! Some well-known private equity firms include Blackstone, KKR, and Carlyle Group.