An investor could get attracted to a private equity fund due to a variety of reasons...
Some are:
* Fund house credibility and reputation * Past performance of similar funds from the same fund house * Fund managers capability * Tax benefits * etc...
In private equity, "inception" refers to the initial stage of a fund's lifecycle, marking the point at which the fund is established and begins to raise capital from investors. This phase includes defining the fund's investment strategy, identifying target sectors, and securing commitments from limited partners. The inception phase is critical as it sets the foundation for the fund's operations, investment decisions, and overall performance.
Investors can consider various types of investment fund structures, including mutual funds, exchange-traded funds (ETFs), hedge funds, and private equity funds. Each structure has its own characteristics and level of risk and return potential.
Locust is a pejorative term derived from the German "Heuschrecke", which German politician Franz Müntefering created in the context of describing private investors, private equity funds and investment banks. The term has been popularized and is continually used in discussions critical to capitalism in Germany.
The Kuwait private equity fund is strategized to seek long-term capital appreciation by investing primarily in Kuwaiti domiciled, listed equities. To help measure the success of the Fund, its performance will be measured against the Benchmark (S&P Kuwait Custom Index).
Entrepreneurs starting a company usually do not have the personal resources to fund start up costs. Equity funding for a new business can also be raised from friends and family but this method does not usually yield the amount of financing necessary. An example of equity financing used by many entrepreneurs is to raise venture capital from wealthy private investors.
The Different Mutual Fund Categories in India are:1. Equity Diversified Funds2. Equity Midcap Funds3. Equity Infrastructure Funds4. Equity Banking Funds5. Equity Pharma Funds6. Equity FMCG Funds7. Equity Technology Funds (IT)8. Arbitrage Funds9. Equity Index Funds10. Balanced Funds11. Monthly Income Plans12. Debt Funds13. Liquid Funds14. Income Funds15. GILT Funds16. Gold ETFs17. Fund of Funds - Equity Oriented18. Fund of Funds - Debt Oriented
"An investment fund that manages money from investors seeking private equity stakes in startup and small- and medium-size enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities." - Investopedia
An equity fund primarily invests in stocks and shares of publicly traded companies, aiming for capital appreciation and income through dividends. In contrast, an equalization fund is designed to balance the investment returns among different classes of investors in a pooled investment vehicle, often by adjusting the purchase prices of shares based on the timing of their investments. Essentially, while equity funds focus on stock market investments, equalization funds aim to ensure fairness in profit distribution among investors.
To be eligible to acquire private equity fund first the company has to be established and have a viable plan for major growth. However it also depends on the business sectors involved.
Can be acquired by placing funds in investment companies(such a mutual fund). The investment company pools resources of many investors and reinvest them in common stock (or other investments).
The main business of the Blackstone Group is private equity, investment banking, and alternative asset management, and financial services. The company specializes in private equity, credit and hedge fund investments.
Yes, by a lot. By definition a private equity group is a group focused on investing in troubled companies and other assets. Hedge funds are unregulated investment fund. But hedge funds are more open to small investors compared to the private equity investors that risk more money. Also private equity groups are interested investing in troubled companies with many of them taking over companies turing them around and then selling them. Hedge funds do not do take overs as frequent and use other techniques such as borrowing money buying stock and then selling them short. They have more interest in buying a companies stock than buying the whole company. In the past decade or so both have been able to make large profits because of the low interest rates on the loans they take out to fund their ventures. You can get more information from here also : http://www.opalesque.com