Includes equity securities in operating companies that are not publicly traded on a stock exchange, and investments made by a private equity firm, a venture capital firm or an angel investor.

All three provide working capital to a target company to foster growth, new product development, or restructuring of the company’s operations, management or ownership. Common investment strategies include leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. In an LBO, a private equity firm typically buys majority control of an existing or mature firm, while venture capital or growth capital investment.