Private Equity  is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange. A private equity investment will generally be made by aprivate equity firm, aventure capital firm or an angel investor. Each of these categories of investor has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.

Vanguard has a demonstrated ability to adapt quickly to changing market environments and capitalize on market dislocations through our traditional and distressed buyout approach. In a sutiation like strained financial liquidity and banks high lending rate, private equity funds have made attractive investments by buying the debt of quality businesses, converting that debt to equity, creating value through active participation with management, and ultimately monetizing the investment.  This combination of traditional buyout investing with a “distressed option” has been deployed through prior economic cycles and has allowed the funds to achieve attractive long-term rates of return in different economic and market environments. ​