Private-equity fund

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Private-equity funds are entities that buy illiquid stakes in privately held companies, sometimes by participating in leveraged buyouts. Like hedge funds, the vehicles are structured as private investment partnerships in which only qualified investors may participate. Such funds typically charge a management fee from 1.5% to 2.5%, as well as an incentive fee of from 25% to 30%. Most private-equity funds employ lock-up periods of five to ten years, longer than those of hedge funds.[1]


  1. "Hedge Fund Glossary ”. Hedge Fund Lounge.