Most people misuse the term private equity. This is the correct way to think about it.
Private equity is not a thing you invest in. It is a category.
Saying that someone invests in private equity is like saying that they buy stocks. It tells you nothing about strategy, risk, or approach.
Because inside private equity, there are many ways to invest. There are different deals, different timelines, and different levels of control.
At its core, it simply means this.
You are investing in companies or assets that are not traded on a public exchange.
There is no New York Stock Exchange, no public ticker, just private ownership.
So the next time someone says that they invest in private equity, the real question is what kind.
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