Private equity is a type of investment in which funds are invested directly into private companies or a stake in a public company is acquired and delisted from the stock exchange. Private equity firms typically use their own capital, along with funds raised from investors, to acquire companies with the goal of improving their operations and increasing their value over time. Private equity investments are generally long-term and involve actively managing the companies to maximize their profitability and growth potential. This area of investment is often characterized by high levels of risk and high potential returns for investors.