Private_equity_fund | TriviaQuestions.online

⭐ Core Definition: Private equity fund

A private equity fund (abbreviated as PE 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 one- or two-year extensions). At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund. From the 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.

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👉 Private equity fund in the context of Investment fund

An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to:

hire professional investment managers, who may offer better returns and more adequate risk management;
benefit from economies of scale, i.e., lower transaction costs;
increase the asset diversification to reduce some unsystematic risk.

It remains unclear whether professional active investment managers can reliably enhance risk adjusted returns by an amount that exceeds fees and expenses of investment management. Terminology varies with country but investment funds are often referred to as investment pools, collective investment vehicles, collective investment schemes, managed funds, or simply funds. The regulatory term is undertaking for collective investment in transferable securities, or short collective investment undertaking (cf. Law). An investment fund may be held by the public, such as a mutual fund, exchange-traded fund, special-purpose acquisition company or closed-end fund, or it may be sold only in a private placement, such as a hedge fund or private equity fund. The term also includes specialized vehicles such as collective and common trust funds, which are unique bank-managed funds structured primarily to commingle assets from qualifying pension plans or trusts.

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⭐ Core Definition: Private equity fund
👉 Private equity fund in the context of Investment fund
Private equity fund in the context of Hedge funds
Private equity fund in the context of Brynwood Partners
Private equity fund in the context of CVC Capital Partners

Private equity fund in the context of Hedge funds

A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to aim to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals.

Hedge funds are considered alternative investments. Their ability to use leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, commonly known as mutual funds and exchange-traded funds (ETFs). They are also considered distinct from private equity funds and other similar closed-end funds as hedge funds generally invest in relatively liquid assets and are usually open-ended. This means they typically allow investors to invest and withdraw capital periodically based on the fund's net asset value, whereas private-equity funds generally invest in illiquid assets and return capital only after a number of years. Other than a fund's regulatory status, there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a "hedge fund".

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Private equity fund in the context of Brynwood Partners

Brynwood Partners is an American private equity investment firm focused on leveraged buyout and other control investments.

Since its founding in 1984, the firm, headquartered in Greenwich, Connecticut, has raised five investment funds, including a $250 million fund in 2005. Through these funds, the company owns firms and brands including Juicy Juice, Balance Bar, and Pearson's Candy Company (Nut Goodie, Salted Nut Roll, Mint Patties, Bun Bars and Bit-O-Honey).

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Private equity fund in the context of CVC Capital Partners

CVC Capital Partners plc is a Jersey-based private equity and investment advisory firm with approximately €186 billion of assets under management and approximately €157 billion in secured commitments since inception across American, European, and Asian private equity, secondaries, credit funds and infrastructure. As of 31 December 2021, the funds managed or advised by CVC are invested in more than 100 companies worldwide, employing over 450,000 people in numerous countries. CVC was founded in 1981 and, as of 31 March 2022, has over 850 employees working across its network of 25 offices throughout EMEA, Asia and the Americas.

In 2023, it raised the largest ever raised private equity fund globally at €26 billion.

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Private equity fund in the context of "Investment fund"

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⭐ Core Definition: Private equity fund

👉 Private equity fund in the context of Investment fund

Private equity fund in the context of Hedge funds

Private equity fund in the context of Brynwood Partners

Private equity fund in the context of CVC Capital Partners