A private equity firm takes an ownership stake in a company that is not listed publicly and works to turn the company around or to grow it. Private equity firms raise funds in the partech international ventures form of an investment fund with a defined structure, distribution funnel and then invest it into the companies they wish to invest in. Investors in the fund are referred to as Limited Partners, and the private equity firm serves as the General Partner responsible for purchasing, managing, and selling the target companies to maximize the returns on the fund.

PE firms can be critiqued for being uncompromising and pursuing profits at all cost, but they have extensive management experience that allows them to improve the value of portfolio companies by enhancing operations and supporting functions. They can, for example guide a newly appointed executive team through the best practices in corporate strategy and financial planning and assist in the implementation of streamlined IT, accounting and procurement systems to reduce costs. They can also boost revenue and find operational efficiencies which can help improve the value of their assets.

Private equity funds require millions of dollars to invest, and it could take them years to sell a business in a profit. As a result, the industry is extremely illiquid.

Working at an investment firm that deals in private equity typically requires prior experience in finance or banking. Associate entry-level associates are responsible for due diligence and finance, whereas junior and senior associates are accountable for the relationship between the clients of the firm and the company. In recent times, compensation for these positions has increased.