Private equity (PE) is capital that is not listed on a public exchange. Private equity investments typically aim to acquire significant shares in private firms, often to increase operational efficiency and enhance profitability before either selling the firm at a profit or taking it public again. Investors contribute capital to a PE fund usually for a long-term horizon, with the expectation of high returns when the investments mature. This type of investing can involve growth capital, venture capital, or leveraged buyouts.