Private Equity

Buyouts, value creation and taking companies private.

1. What Private Equity Is — Private equity firms buy companies, often using borrowed money, try to make them more valuable and sell them years later. Here is how the business works, who invests and how big it has become.
2. Leveraged Buyouts — In a leveraged buyout, a private equity firm pays for a company mostly with borrowed money, which the company itself must repay. Here is how the math works, why leverage magnifies results and a record-setting 2026 example.
3. How PE Creates Value — Private equity returns come from a few sources: growing profits, paying down debt, buying other companies and selling at a higher valuation. Here is how each lever works and which ones reflect real improvement.
4. Fees & Fund Structures — Private equity funds have layered fees and a specific order for splitting profits, called the waterfall. Here is how management fees, hurdle rates and carried interest work, and how they affect investors’ returns.
5. Taking Companies Private — In a take-private, a private equity firm buys all the shares of a public company and delists it. Here is why companies go private, how shareholders are paid and what a real 2025–26 take-private looked like on a chart.
6. PE-Backed IPOs — Private equity firms often sell companies to the public through IPOs. Here is how these offerings differ from startup IPOs, what to check before buying one and how the largest PE-backed IPO ever has traded.