A private equity deal is an investment agreement between a venture capitalist or private investor and a company that offers the investors the opportunity to buy shares of the company at a discount. This allows them to gain exposure to new businesses before they become publicly traded, while also gaining an ownership stake in those businesses.
Private equity deals can be divided into two types: leveraged buyouts (LBOs) and growth capital investments. LBOs are typically used when a business owner wants to sell their company quickly for an increased amount of money, whereas growth capital investments are made in order for the investors to help grow the business over time.
Both types of private equity deals have their own benefits and drawbacks, so it's important to do your research prior to committing any funds. Additionally, keep in mind that these agreements usually last anywhere from 3-5 years, so you will need adequate patience if you're interested in participating in one!