Private equity investments are an alternative form of financing where capital is raised outside the public market. These investments are considered highly illiquid and are typically realized when a company is sold, goes public, undergoes a merger or acquisition, or undergoes recapitalization.
Over the past two decades, private equity investments have significantly increased not only in developed countries but also in emerging markets. Currently, there are at least 15,000 companies owned by institutional private equity funds, covering all industries and stages of development. The net asset value of global private equity investments increasing 7.5 times in the 21st century—twice the growth rate of public market capitalization.
The role of private equity in the economy continues to expand, primarily benefiting the companies receiving investments and the investors funding them, but also impacting a broad range of stakeholders. Private equity markets significantly influence the technology sector and the retail investment industry. The key players in the global private equity market include The Blackstone Group (USA), Apollo Global Management LLC (USA), Carlyle Group (USA), and KKR & Company LP (USA).
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