Private equity funds are investment vehicles that pool capital from investors to invest in privately-held companies or to acquire public companies and take them private.
These funds typically aim to provide investors with high returns over a long-term investment horizon, typically over five to ten years or more.
Private equity funds use a variety of strategies to generate returns, including buying and holding companies to improve operations and grow their value, as well as leveraging their expertise to identify undervalued companies and invest in them early.
Private equity funds typically require investors to commit large sums of capital and have a longer investment horizon compared to other types of investments. However, they can offer potentially high returns due to their focus on strategic investments in promising companies.
As with any investment, it’s important to carefully evaluate the risks and potential benefits before investing in a private equity fund.