Private equity investors are capitalists who invest in businesses and companies that are not yet public but that have the potential to become so. They do this by buying the shares of these companies, sometimes from the original owners, and then working with the company to make it more profitable and successful. One of the most common techniques used by private equity investors is called “buyout."
This means that they take over a company and turn it into a privately held company. Buyouts can be very effective because they tend to lower costs and increase profits for the company.