<P> Private equity typically refers to investment funds organized as limited partnerships that are not publicly traded and whose investors are typically large institutional investors , university endowments , or wealthy individuals . Private equity firms are known for their extensive use of debt financing to purchase companies , which they restructure and attempt to resell for a higher value . Debt financing reduces corporate tax burdens and is one of the principal ways in which private equity firms make business more profitable for investors . Private equity might also create value by overcoming agency costs and better aligning the incentives of corporate managers with those of their shareholders . </P>
<P> Private equity typically refers to investment funds organized as limited partnerships that are not publicly traded and whose investors are typically large institutional investors , university endowments , or wealthy individuals . Private equity firms are known for their extensive use of debt financing to purchase companies , which they restructure and attempt to resell for a higher value . Debt financing reduces corporate tax burdens and is one of the principal ways in which private equity firms make business more profitable for investors . Private equity might also create value by overcoming agency costs and better aligning the incentives of corporate managers with those of their shareholders . </P>
where do private equity firms get their money
where do private equity firms get their money
large institutional investors , university endowments , or wealthy individuals
large institutional investors , university endowments , or wealthy individuals