Private Equity Fund

A private equity fund is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) securities according to one of the investment strategies associated with private equity. Private equity funds are typically limited partnerships with a fixed term of 10 years (often with annual extensions). At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund. From investors point of view funds can be traditional where all the investors invest with equal terms or asymmetric where different investors have different terms.

A private equity fund is raised and managed by investment professionals of a specific private equity firm (the general partner and investment advisor). Typically, a single private equity firm will manage a series of distinct private equity funds and will attempt to raise a new fund every 3 to 5 years as the previous fund is fully invested.

Read more about Private Equity FundLegal Structure and Terms, Private Equity Investments and Financing, Private Equity Multiples and Prices, Portfolio Company Sales (or exits), Private Equity Funds and Private Equity Firms: An Illustration, Investment Features and Considerations, See Also

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Richard Ong
... former chief executive officer of the Hopu Fund, a China-based private equity fund ... Hopu is now the largest private equity fund in China ... Ong is now the Chairman and CEO of RRJ Capital, a US$2.3bn private equity fund focusing on China and Asia ...
Private Equity In The 2000s - The Third Private Equity Boom and The Golden Age of Private Equity (2003–2007) - Secondary Market and The Evolution of The Private Equity Asset Class
... In the wake of the collapse of the equity markets in 2000, many investors in private equity sought an early exit from their outstanding commitments ... which had previously been a relatively small niche of the private equity industry, prompted new entrants to the market, however the market was still characterized by limited ... had begun to pursue secondary sales to rebalance their private equity portfolios ...
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Collateralized Fund Obligation - Private Equity CFOs
... have been only a handful of publicly announced private equity securitization transactions ... Typically, owners of private equity assets will securitize a portfolio of funds as a way of generating liquidity without an outright secondary sale of the funds ... Temasek Holdings completed $810 million securitization of a portfolio of 46 private equity funds ...
Private Equity Fund - See Also
... Private Equity for more information on the private equity asset class ... History of private equity and venture capital List of private equity firms for a list of the largest active private equity investment firms ... Limited partnership Limited liability company Taxation of private equity and hedge funds Hedge fund ...

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