A Private Equity Firm is an investment company that raises capital from investors to acquire ownership stakes in private companies or buy out public companies to delist them. These firms typically invest in businesses they believe can grow and become more profitable over time. They aim to improve the operations and financial performance of these companies before eventually selling them for a profit. Investors in private equity firms often include wealthy individuals, pension funds, and institutional investors. The firms usually charge management fees and take a percentage of the profits when they sell the companies, which is known as a carried interest.