In general, private equity works as a function between capital seekers and capital providers. Entities ranging from entrepreneurs and start-ups to large corporations need financing in some point of their lifecycle. Capital providers, through equity or debt, or a combination of both, help to finance such business requirements. Because such deals are not public (until announced), deal-flow and sourcing is a key element of private equity. Private equity to capital seekers is hence an alternative intermediary for financing to banks and moneylenders. For capital providers, the private and illiquid nature of such companies would translate to cheap valuations or the potential for exponential growth, both of which would allow an equity stake in the company to reap a handsome return.