Private Equity Funds

Keith R. Fevurly

Chapter Chapter 11 in The Handbook of Professionally Managed Assets, 2013, pp 209-228 from Springer

Abstract: Abstract The world of private equity and private equity funds is potentially very lucrative (offering the potential for extremely high returns) but extremely risky (not for the faint of heart). Private equity generally buys distressed private (non-publicly traded) businesses, positions them in a fund available to wealthy investors, and attempts to turn those businesses around financially before “taking the business public”—that is, engaging in an initial public offering (IPO) of the shares. A segment of private equity firms also invests in start-up businesses and are known as venture capitalists. Because individual investors in private equity funds are primarily accredited investors (investors with a net worth of at least $1.0 million, excluding home equity), it is appropriate that private equity and private equity funds constitute the third and final chapter in this section on professionally managed assets for high-net-worth investors. Because of the paucity of individual investors with the requisite capital to fund private equity and private equity funds, the industry primarily depends on institutional investors, such as pension funds, to provide capital.

Keywords: Hedge Fund; Initial Public Offering; Private Equity; Private Business; Venture Capital Fund (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-1-4302-6020-2_11

Ordering information: This item can be ordered from
http://www.springer.com/9781430260202

DOI: 10.1007/978-1-4302-6020-2_11

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().