Private equity markets have grown rapidly. Provide an overview of the private equity market, including a discussion of the advantages and disadvantages. There is a paper The Economics of the Private Equity Market by Stephen D. Prowse at the Federal Reserve Bank of Dallas that provides a nice overview. You are also welcome to look at other websites, including Wikipedia. Answer the following questions: what is the private equity market and how does it different from the standard equity market? What types of firms raise funds through the private equity market? Is it cheaper to raise funds through a standard equity market or the private equity market? What kind of borrowers does this market attract? How does asymmetric information enter into the story? Which firms are the main participants in the private equity market?