What is the difference between private equity and public debt?

The main difference between private equity and public debt is the way that investments are made. Private equity is when investments are made from private sources such as individuals, private companies, and private organizations. Private equity investments are not traded on public markets, so they are less exposed to the volatility of public markets. Public debt is when investments are made from public sources such as government organizations and publically traded companies. Public debt investments are traded on public markets, so they are exposed to the volatility of public markets. Private equity investments involve larger risks than public debt investments. Private equity investors typically take control of the company and are able to make decisions regarding the management, structure, and strategy of the company. Private equity investments also have a higher level of return than public debt investments, as investors have the potential to double or triple their investment returns through an increase in value of the company. Public debt investments involve little to no control over the company, and the return is typically less than a private equity investment due to the security of the investment. However, public debt investments have a lower risk associated with them since they are traded on public markets, and they also generally have a lower level of return than private equity investments.

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