Popular Courses. In sum, the investments by mutual funds provide companies with more capital than they would have raised solely from the venture capitalists. Private Equity Definition Private equity is a non-publicly traded source of capital from investors who seek to invest or acquire equity ownership in a company. Interestingly, these companies are less likely to be acquired, compared to companies without mutual fund investment. Investing in a public company may seem far superior to investing in a private one, but there are a handful of benefits to not being public. Login Newsletters. Conversely, it can be years before a private firm can again be sold and prices must be negotiated between the seller and buyer.