Private equity refers to investment in closely held or private businesses not listed on a public stock exchange. Private equity firms provide long-term investment and growth capital to closely held businesses by acquiring ownership interest. Because the businesses are not listed on the stock exchange, any investor wishing to sell their interest in private firms must find a buyer through private placement. In business valuation analysis, private equity investments are one of the main drivers of business valuation work for the large number of startup businesses and mid-size businesses which are at different stages of growth and require growth capital to fulfill expansion plans.