PRIVATE EQUITY

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Private Equity

Private Equity (PE) is ownership or interest in an entity that is not publicly listed or traded. A source of investment capital , Private Equity (PE) comes from high net worth individuals and firms that purchase stakes in private companies or acquire public companies with plans to take them private and delist from stock exchanges. 

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Private Equity shares are a riskier investment option then investing in public companies . 

Benefits Of Investing In Private Equities?


  • The investment in stocks have historically been delivering the highest returns as compared to other asset classes over a long-term investment horizon. In fact, investment in stocks and securities provide you with returns which can beat inflation. It is among the most viable investment avenues.
  • Investment in equities can also provide you income through dividend. Dividend distribution is a corporate action, a way for listed companies to share their profits with their shareholders. Though it is not mandatory for companies to declare dividends, but many companies follow the practice of declaring dividends to signal profitability and increase investors’ confidence.
  • You must, however, remember that equities have higher volatility. Hence, you should study the business cycles, analyse the target company very carefully and carry out your own diligence before investing in stock markets.
  • You can minimise the associated risks by diversifying your investment across sectors, regions and company sizes.