Private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange.

A private equity firm is an asset management group that invests in venture capital and private equity opportunities - the firm will provides venture capital to companies (often new upstarts) using the assets of private investors, with the goal of offering a higher return on investment for their clients than in a traditional investment class. A firm will sometimes provide the companies they invest in with management services to assist in their growth.