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How do private equity firms work?

FILE - A sign for The Blackstone Group L.P. investment firm stands in front of their offices, Oct. 15, 2018, in New York. Blackstone Group is a private equity firm.
Mark Lennihan
/
AP
FILE - A sign for The Blackstone Group L.P. investment firm stands in front of their offices, Oct. 15, 2018, in New York. Blackstone Group is a private equity firm.

From dog food to mattresses and from Chef Boyardee to wedding dresses, a new type of investment firm is making monthly headlines with how it acquires thousands of brands.

Private equity firms have evolved from the bustling world of venture capital.

The mind-boggling deals they’ve made often buy out massive industry heads. But they also tote their ability to maximize a company's earnings and save struggling businesses.

How do private equity firms work and do they actually help the companies they buy out?

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