Private Equity Groups, sometimes called a “PEGs”, invest in privately held businesses. Their cash comes from several sources including: pension plans, insurance companies, wealthy individuals, family offices, endowments, such as universities and family foundations, and sovereign funds such as the Middle East and Asia. They usually have cash that has already been raised from those sources, but some private equity groups identify the business they wish to acquire first and then raise the cash from investors. One common requirement is that they will only acquire a majority interest in the selling company, although occasionally a PEG will hold less than a majority interest. It all depends on their business model.