Private equity investments generally include which of the following types?

Private equity investments primarily include both debt and equity securities that are not publicly traded. This classification encompasses a wide range of investment opportunities where capital is infrequently made available through public markets. In private equity, firms or funds typically invest directly in private companies or acquire public companies with intentions to delist them, allowing for substantial control over those businesses.

This approach allows private equity investors to focus on driving operational efficiencies, implementing strategic changes, and enhancing value before selling the investment after a designated period. By including both debt (such as mezzanine financing) and equity (such as common or preferred shares), private equity investments provide a comprehensive suite of financial options to seek returns in various forms.

Other choices fail to capture the essence of private equity. For instance, limiting it to publicly traded stocks completely overlooks the fundamental nature of private equity, which is characterized by private rather than public ownership. Betting exclusively on options and futures does not align with the long-term goal of private equity to invest in and manage actual businesses. Similarly, focusing solely on real estate does not account for the broader spectrum of private equity investments in various sectors and industries beyond real estate.