It takes on the risk of providing new businesses with funding so that they can begin producing and earning profits. Basically, they seek to improve upon an acquired business and then sell it for a profit.Ī venture capital firm, on the other hand, invests in a company during its earliest stages of operation.
Private equity firms do not maintain ownership for the long term, but rather prepare an exit strategy after several years.
With private equity, multiple investors’ assets are combined, and these pooled resources are used to acquire parts of a company, or even an entire company. President, Dawson Financial, Los Angeles, CA
