Which of the following is an example of private equity activity?

Private equity activity primarily involves investing directly in private companies or engaging in buyouts of public companies with the intention of taking them private. Providing venture capital to start-ups fits this definition seamlessly. Venture capital is a subset of private equity that specifically targets early-stage companies that show high growth potential but may lack the funding or resources to scale their operations effectively. Investors in venture capital provide not only financial support but also expertise and guidance to help these companies grow.

The other options describe activities that do not fall under traditional private equity activity. Investing in municipal bonds pertains to fixed-income securities issued by local governments, which does not involve equity investments in companies. Buying shares in publicly traded banks involves purchasing stock on the public market, rather than making private equity investments into privately held entities. Offering savings accounts to individuals is a banking activity and does not relate to equity investments at all. Thus, providing venture capital to start-ups exemplifies private equity activity by facilitating investments in private enterprises.