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Consulting Glossary

Private Equity

Investment in private (non-publicly traded) companies, typically through structured funds with defined investment periods.

Private Equity
Private equity (PE) refers to investment in companies not publicly traded on a stock exchange, typically through funds that raise capital from institutional investors (LPs) and deploy it into target businesses with the objective of improving performance and realising returns over a defined period (typically 5–7 years). Buyout funds, growth equity funds, and venture capital are all sub-categories.

In Consulting

How Private Equity Is Used in Practice

PE funds are significant buyers of consulting services — at the deal stage (commercial due diligence), through the ownership period (operational improvement), and at exit (exit preparation and vendor due diligence). The Gulf's sovereign wealth funds, family offices, and newly formed PE managers have become important advisory clients as the region's investment ecosystem matures.

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Where Karter McKinley Applies This

Strategy & Execution
We translate strategy into measurable results — building the operating model, leadership alignment, and execution cadence that turns ambition into performance.
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M&A Advisory
We advise buyers, sellers, and investors across the full deal lifecycle — origination, due diligence, structuring, and post-merger integration.
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Financial & Investment Advisory
We advise on capital structure, investment strategy, and financial performance — helping organisations raise capital, deploy it intelligently, and manage risk.
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FAQ

Frequently Asked Questions about Private Equity

How does private equity create value?
PE funds create value through revenue growth (expanding revenues through new customers, markets, or products), margin improvement (reducing costs and optimising pricing), and multiple expansion (exiting at a higher EBITDA multiple than entry). Leverage amplifies equity returns when the business performs well.
Which Gulf markets are most active for private equity?
UAE (particularly Dubai) and Saudi Arabia are the most active Gulf PE markets, with the Saudi market growing rapidly as Vision 2030 creates new investment opportunities and the Tadawul develops as an exit route. Saudi Venture Capital Company (SVC) and Jada Fund of Funds are government-backed anchors that have catalysed the local PE ecosystem.

Related Terms

Also in Our Consulting Glossary

Due Diligence
A comprehensive investigation of a business before a transaction or significant commitment.
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EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortisation — a core measure of operating profitability.
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Mergers & Acquisitions (M&A)
Transactions in which companies are consolidated — through mergers, acquisitions, divestitures, or buyouts.
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