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Private Equity Decoded For The Layman

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Begin a sentence with ‘ private equity funds in india ’ and you’d be sure to lose me. Simple words, but the very words throw me into a frenzy of confusion. What is private equity? What are private equity funds? Well, after a bit of extensive research, I’ve laboriously decoded the inner workings of private equity, funds, and all. So, here’s what I’ve gathered. Private equity is essentially a form of investment. The reason ‘private’ comes into the picture is because private equity basically refers to investments made in private companies, or companies that will eventually go private as a result of all such private equity transactions. Now, coming to ‘equity’, it refers to the value of the shares issued by a company. So put the two concepts together, the value of shares from private companies…. And voila, you’ve got ‘private equity’! So, what are private equity funds in india all about, now that we’ve decoded what private equity means? Private equity funds relate to the process