A private equity firm or private equity fund consists of a firm that has a large pool of money available to be invested in businesses or to acquire profitable companies. They generally raise their funds from wealthy individuals investing as limited partners, pension funds, university endowments, insurance companies, and other sources. Micro private equity firms generally target smaller companies.

Private credit firms or funds consist of firms that make loans to businesses who may have difficulty securing bank credit or require a longer term loan that may be available from commercial banks. Private credit firms obtain their funds from the same sources as private equity firms.

Accredited Investors - Net Worth Standards

Debt Service Ratio for Business Loans

Angel Investors - Groups

Personal Guarantee of a Loan