Private equity refers to off-exchange equity capital invested by investment companies or funds in unlisted companies. These investments are usually made with the aim of increasing the value of the company through strategic measures and later selling it at a profit, for example through a sale or an initial public offering (IPO). Typical characteristics of private equity are: long-term capital investment (private equity companies often invest over several years), active influence (investors contribute management expertise to improve the profitability and efficiency of the company), and exit strategies (once the value enhancement targets have been achieved, the company or its shares are sold). Private equity plays a major role in the hotel and real estate sector, as investors acquire, restructure, or develop hotels in order to sell them later at a profit.