1. Fundraising: Private equity firms raise capital from institutional investors and high net worth individuals. 2. Sourcing Deals: They identify potential investment opportunities. 3. Due Diligence: Conduct comprehensive evaluations of target companies. 4. Investment: Finalize the investment terms and provide capital. 5. Value Creation: Work with the business to drive growth and improve operations. 6. Exit: Eventually, private equity firms exit the investment via IPOs, mergers, or acquisitions.