Private equity is a type of investment that involves investing in private companies or taking public companies private. Private equity firms typically raise funds from institutional investors, such as pension funds or wealthy individuals, and use this capital to invest in companies that are not publicly traded. Daryl Yurek says these firms are often advised by experienced professionals, they invest in companies that have the potential for significant growth and profitability. They may focus on specific industries or sectors, such as technology, healthcare, or consumer goods. Private equity firms may also invest in distressed companies that are struggling financially but have the potential for a turnaround with the right management and investment.

Daryl Yurek says these funds typically take an active role in the companies they invest in, working closely with management to implement strategic changes and improve performance. This may involve restructuring the company, streamlining operations, and making investments in research and development or new product development.

 Private equity firms hold their investments for several years before exiting through a sale or initial public offering (IPO). During this time, they work to build value in the company and position it for a successful exit. Private equity investments can be attractive to companies that are seeking growth capital, says Daryl Yurek, they typically have a long-term investment horizon and are willing to make significant investments in the company. However, private equity investments can also come with significant risks, including the potential for equity dilution and loss of control over the company.

Overall, private equity can be a valuable source of funding for companies that are seeking to grow and expand. Daryl Yurek says it’s important to carefully evaluate the risks and rewards of this type of investment and to work with experienced legal and financial professionals to ensure that the terms of the investment are favorable for the company’s long-term success.