Private equity (PE) is an asset class in which fund managers raise capital from institutional and high-net-worth investors (limited partners) to deploy into private companies or to take public companies private. Unlike public equity markets, private equity investments are illiquid and held for an extended period — typically four to seven years — before being realised through an exit.
The PE asset class encompasses several strategies: buyouts (acquiring control of established businesses), growth equity (minority investments in expanding companies), venture capital (early-stage company investments), and special situations (distressed or event-driven opportunities). In Southeast Asia and Australia, the PE market has matured significantly, with domestic managers complemented by global GPs establishing regional funds and offices in hubs such as Singapore and Sydney.