PE - Private Equity funds invest to acquire ownership of equity in companies that are at a high growth stage of their business. There are different types of private equity firms, and they participate either actively or passively in portfolio companies based on their strategies - may include Mezzanine capital, leveraged buyout, venture capital or growth buyout.

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Passive participation is more commonly related to mature companies that have proven business models, but requires funds for expansion, entering new markets, restructuring their operations or financing an acquisition.

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Active participation, on the other hand, has more to do with firms playing a direct role in restructuring a business, providing support or advice or re-arranging the senior management.  

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A Private Equity fund usually prefers to own the majority shareholding , which gives them complete control of the company’s affairs after a buyout.