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Prince

ur avg finance bro • 5m

that's a good question. Private Equity Fund is a pool of money that is typically raised from institutions, family offices and pension funds. They use the funds to acquire controlling stake in underperforming private held companies (in most cases) and improve the business. The holding period for a fund like this is typically a decade or two. Once the business is improved, they sale their stake in the company at a higher valuation than what they acquired the company for. They make their cut and investors are happy with robust returns. Hope that answers your question :)

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