Private Equity Firm Investment Strategy

Private equity plays a vital role in the capital markets, particularly when targeting opportunities in firms that require restructuring or growth capital. A private equity firm has identified two companies: Company A, which is in a mature industry with steady cash flows, and Company B, a start-up in a high-growth sector but currently operating at a loss. The firm typically focuses on generating high returns over a longer investment horizon by actively managing the companies it acquires. Given this context, which of the following statements accurately describes a potential investment strategy of the private equity firm?