Business Economics and Public Policy
Richman Center News
Public Aspects of Private Equity
Private equity plays an important role in investment markets and the broader economy. Private equity funds—managed by general partners, or GPs—take stakes in companies, exercise control, and actively seek to improve the performance of their portfolio companies. They do so in pursuit of financial returns for their investors (limited partners, or LPs) higher than the returns available in public markets. Private equity has become a key engine of investment markets, seeking absolute return while driving performance and efficiency in portfolio companies.
