Private equity is simply investing in private companies. Unlike buying shares in a business listed on the stock market, private equity investors buy stakes in businesses that aren’t publicly traded.

But it’s about much more than providing capital. As Richard Hickman, Investment Director at HVPE, explains, private equity firms work alongside management teams to help businesses grow, improve and create value over time. That partnership is a big part of what makes the asset class different.

The aim is then to realise that value, typically through a sale to another company or by listing the business on a stock exchange through an IPO. The goal is simple: build better businesses and generate attractive long-term returns for investors.

HVPE is a FTSE 250 investment company that gives investors access to a globally diversified portfolio of private equity investments. Managed by HarbourVest, one of the world’s leading private markets specialists, it provides exposure to hundreds of private companies around the world through a single listed investment.