Private Equity refers to investment funds that buy and restructure companies that are not publicly traded. These funds typically invest in private companies or conduct buyouts of public companies, aiming to improve their financial performance and eventually sell them for a profit. Investors in private equity funds include institutional investors and accredited investors who seek higher returns compared to traditional investments. The process often involves significant operational changes, strategic guidance, and financial restructuring. Private equity firms, such as Blackstone and KKR, play a crucial role in identifying potential investment opportunities and managing the acquired companies to enhance their value before exiting the investment through a sale or public offering.