You’ve probably heard of the term private equity (PE). Roughly $3.9 trillion in assets were held by private-equity (PE) firms as of 2019, and that was up 12.2 percent from the year before.

Investors seek out private equity (PE) funds to earn returns that are better than what can be achieved in public equity markets. But there may be a few things you don’t understand about the industry. Read on to find out more about private equity (PE), including how it creates value and some of its key strategies.

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