#### Definition: Private equity funds (PE funds) invest in privately held companies with the aim of increasing their value and exiting at a profit.
#### Details: PE funds pool capital from institutional and private investors to acquire majority or minority stakes in businesses.
- Typical holding period: 4–7 years
- Focus on growth, efficiency, and profitability
- Exit strategy via sale, IPO, or merger
#### Relevance in a transaction context: PE funds are relevant buyers for entrepreneurs – bringing capital, operational expertise, and strategic networks. However, they usually follow clear return targets and defined exit strategies.