"Private equity" and "private equity fund" are related terms, but they refer to slightly different concepts: Private Equity (PE): Private equity refers to the investment in private companies or the acquisition of public companies with the aim of restructuring, improving efficiency, and ultimately selling them for a profit. Private equity firms typically raise funds from institutional investors, high-net-worth individuals, and other sources to invest in private companies. These firms often take a hands-on approach to managing and growing the companies in which they invest, with the goal of maximizing returns for their investors. Private Equity Fund: A private equity fund is a pooled investment vehicle formed by a private equity firm to invest in various companies on behalf of its investors. Investors in private equity funds typically include institutional investors, pension funds, endowments, and wealthy individuals. The private equity fund manager or general partner (GP) is responsible for sourcing investment opportunities, making investment decisions, and managing the portfolio companies. Limited partners (LPs) contribute capital to the fund and receive returns based on the fund's performance.

Answer given by Shubhamm Sir at 29-Apr-2024 09:31 PM