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In: Finance

how can private equity fund protect its capital in an investment?

how can private equity fund protect its capital in an investment?

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Expert Solution

PRIVATE EQUITY FUNDS

private equity funds have a low regulatory system because the one who invest in these kind of funds were genarally high income earners who can face losses and any bad situations in financial markets. They are not fully focused on protection always. Recently, private equity funds have seen more of their investment capital coming from pension funds and endowments. These type of investment have management fees and performance fee. Now a days it is highly regulated in performance.

  These are collective investment scheme used for making investments in various equity. This is why it provide some risk reduction in normal capital investing. securities according to one of the investment strategies associated with private equity. So one can mitigate loss or they can reduce their loss by investing in private equities. So investing in different private equity portfolio will helps to protect the investment in capital.

ThankYou....

jeff jeffy answered 2 years ago
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