Private equity is capital committed to a manager who buys companies and restructures their balance sheets. PE firms add operational experts to improve efficiency and create jobs long-term, though they're often criticized for cutting positions.
In private equity, it's essentially a pool of capital that has been committed to a manager, and they are out looking for companies that are either private to begin with or are, are public today, but would, they would like to take private in order to create more value within that company. And that value is created by cleaning up the balance sheet and whether that's adding leverage or taking away leverage, depending on the market, that could help. I think in a lot of cases, and private equity gets beat up for the way jobs work within those companies, but I would say that their biggest goal is to create efficiencies within the company. So I think over the long run, if you were to look at private equity portfolios, you do see job creation within those portfolios through efficiency, but they're bringing in operational experts from other companies in the industry and really just trying to build a better company.
