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What Is Private Equity?

By Matthew DiLallo – Updated Dec 13, 2024 at 10:10AM

Key Points

  • Private equity targets institutional and accredited investors for long-term, illiquid equity investments.
  • PE firms earn via management fees and a portion of profits, typically structured as an 80/20 split.
  • Investors choose private equity for potential outperformance of public market returns and reduced volatility.
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