Benefits of Private Equity

Abstract

For many investors, direct "long term" private investments are synonymous with alternative investment. As shown in this article, direct private investment covers a wide range of investment opportunities. It is important to point out that various sources define these investment opportunities differently. For some, venture capital is the proper term for direct private investment and that term may cover a wide range of differing investment opportunities, including early stage investment (e.g. angel investors, seed capital), to take off (e.g. venture capital), mid-growth investment (e.g. mezzanine finance) to later stage investment (e.g. private equity). Others, investors have been referring to venture investing and buyout investing as "private equity investing" while some in the investment industry use the term "private equity" to refer only to buyout fund investing. This article examines the benefits of private equity investments as part of an investor's overall asset portfolio.

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