Equity investors are people who invest money into a company in exchange for a share of ownership in the company. The firms usually invest in established businesses that are deteriorating because of inefficiencies, unlike VCs who go for younger companies.

There are two ways for investors to make money from an equity investment. The first is through a dividend, which usually occurs when a company is in profit and allows for part of those profits to be divided between the shareholders. The second is if an investor sells their shares.