Private Equity Funds

Hedge funds and private equity funds appeal to high net worth individuals.
Private equity funds. When you invest in a private equity fund you are investing in a fund managed by a private equity firm the adviser. Similar to a mutual fund or hedge fund a private equity fund is a pooled investment vehicle where the adviser pools together the money invested in the fund by all the investors and uses that money to make investments on behalf of the fund. Private equity is an alternative form of private financing away from public markets in which funds and investors directly invest in companies or engage in buyouts of such companies. Both types of funds involve paying managing partners basic fees plus a percentage of profits.
Private equity funds generally fall into two categories. What are private equity funds. Venture capital and buyout or leveraged buyout. A private equity fund typically refers to a general partnership formed by pe firms which are utilized to invest in private companies.
The private equity fund may have general investment criteria meaning it invests in different industries or have specific industry criteria.