What are the different exit mechanisms for Private equity?

[mansoor-bhatt-819b9bf6 (Mansoor Bhatt)]

Private equities can exit a firm in the following ways :

1. Taking the company public by generating the IPO.
2. Strategic sale.
3. Buy back.
4. Liquidation.

[chirag-garg]

Private equity investors usually have an investment horizon of 5-7 years and plan to exit after that after making a substantial profit on their investment. There are many exit strategies that private equity investors can use to offload their investment. The main options are discussed below:

• Initial Public Offer (IPO)

• Strategic Acquisition

• Secondary Sale

• Repurchase by the Promoters

• Liquidation