Fund Structure
Private Equity
A broad category of investment in private companies — encompassing venture capital, growth equity, leveraged buyouts, and distressed investing.
Private equity (PE) is the broad asset class of investing in companies that are not publicly traded. The PE umbrella includes: venture capital (early-stage startups, high risk), growth equity (established growth companies, medium risk), leveraged buyouts (acquiring mature companies with significant debt, primarily financial engineering), mezzanine investing (hybrid debt/equity in late-stage companies), and distressed/turnaround investing (fixing troubled companies). The term 'private equity' is colloquially used to specifically mean LBO (leveraged buyout) firms — KKR, Blackstone, Carlyle, Apollo — which are distinct from venture capital in strategy, structure, and return expectations. PE funds are structured similarly to VC funds (GP/LP, 10-year life, carry) but at much larger scale.