Private equity firms invest in businesses that are not publicly listed, and then work to expand or transform them. Private equity firms usually raise funds through an investment fund that has a clearly defined structure and distribution waterfall, and then they invest that money into the companies they want to invest in. Investors in the fund are known as Limited Partners, and the private equity firm serves as the General Partner responsible for buying and selling the targets to maximize returns on the fund.

PE firms are often criticised for being brutal and pursuing profits at any cost, but they have extensive management experience that enables them to increase value of portfolio companies through improving operations and other functions. For instance, they can guide new executive staff through the best practices of financial and corporate strategy and help implement streamlined accounting procurement, IT, and methods to reduce costs. They can also boost revenues and discover operational efficiencies, which can help them improve the value of their assets.

Private equity funds require millions of dollars to invest, and they can take years to sell a business at a profit. In the end, the industry is extremely illiquid.

Private partech international data room do it yourself equity firms require experience in finance or banking. Associate associates at entry-level work mostly on due diligence and financing, whereas junior and senior associates focus on the relationship between the firm and its clients. In recent years, the pay for these positions has risen.