December 26, 2020

Private equity funds

Private equity funds

  • privately managed by collecting money from minority investors and investing in stocks, bonds, companies or real estate. 
  • When investing in companies, most of them make huge profits through leveraged buyout(LBO). 
  • Unlike public equity funds that target an unspecified majority, membership composition is restricted. 
  • In general, it is less regulated by the government and the expected rate of return is high, but the risk is also high.
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