Private Equity refers to the business of raising funds from investors to purchase a control positions in established privately held companies, typically by borrowing a high percentage of the cash used for the purchase. A private equity fund is any private fund that is not a hedge fund, liquidity fund, real estate fund, securitized asset fund or venture capital fund and does not provide investors with redemption rights in the ordinary course.
For more information about private equity, read What is Private Equity? A Brief History.