Private equity is capital that is not noted on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, working capital, and to bolster and solidify a balance sheet.

Commercial real estate financing provided through a real estate private equity fund for income-producing property that is used solely for business (rather than residential) purposes, such as retail malls, shopping centers, office buildings, apartment complexes, and hotels.  Financing – includes the acquisition, development, and construction of these properties – is typically accomplished through commercial real estate loans.