Explaining private equity and venture capital
Private equity refers to an alternate form of investment – where investments are made in private companies that aren’t registered on a public stock exchange. Private equity investment comes from private equity firms (sometimes referred to as private equity funds), and the funds they provide can only be made accessible to accredited investors.
Venture capital is a form of private equity, where investments are made into small businesses and start-ups. Venture capital equity is inherently more risky, as the success of the business is not yet confirmed. However, the long-term growth potential can often make them attractive options for investors.
