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Private Equity Funds Explained: Structure & Biggest Firms to Know

Private Equity Fund

What is a private equity fund? These are closed-end funds and an alternative investment class. Their capital is not listed on a public exchange but is used for long-term investments directly in selected companies, acquiring ownership rights to improve their operating activities. These funds take an active part in management and exercise operational control. Direct investments can be illiquid for a long time.

Structure of a private equity fund

Such funds are most often created as limited liability partnerships. Private equity funds can participate in leveraged buyouts, private placement loans, distressed debt, or be part of a fund-of-funds portfolio.

The biggest private equity companies are BlackRock, Apollo Global Management, Blackstone, KKR & Co, The Carlyle Group, CVC Capital Partners, and Thoma Bravo. They play an important role in the world of finance and influence business development.

The FinCzech team of experts specializes in fund creation in Europe. Contact us.