Private equity is a form of investment in which resources are applied to companies that are not publicly traded, that is, they are not listed on the stock exchange. Investors acquire shares in these companies, usually with the aim of promoting business growth and appreciation.
These investments can be made by private equity funds, which raise capital from institutional and individual investors. Target companies are usually in stages of development, and private equity can provide capital for expansion, restructuring or acquisitions.
Returns are generated mainly through the sale of shares, either through an initial public offering (IPO), merger or sale to another company. Private equity is known for its high return potential, but it also involves risks and a medium to long-term investment horizon.