Private equity explained from Marketplace on Vimeo.
The basics of a private equity fund is to buy a company, borrow some money, reorganize the company, and sell it for a profit. This could sometimes be a good thing, and sometimes a bad thing. The company being re-organized for a short-term profit may end up with a long-term loss. Maybe this is one of the reasons the private equity funds have nicknames such as "corporate raiders" or "asset strippers."