The insatiable appetites of banks, insurance companies, pensions, endowments, and high-net-worth individuals make enormous capital possible for private equity funds. The private equity market has become an important source of funds for start-ups, firms in financial distress, and firms seeking buyout financing. Private equity is a broad term that refers to any type of equity investment in an asset in which the equity is not freely tradable on a public stock market. Private equities are generally less liquid than publicly traded stocks and are thought of as long-term investments. Private equity has experienced substantial growth in the past two decades, in terms of both capital under management and the amounts invested, and the private equity industry is now considered a recognized asset class.