What is a private equity fund?

A private equity fund (PE fund) is a collective investment vehicle that invests primarily in unlisted securities. Opportunities to invest in such securities, often private limited companies, tend not to be publicised and are therefore generally individually and privately negotiated. As a result, it is difficult for investors outside the private equity industry to gain direct exposure to this type of investment. However, pooling investor contributions via a PE fund managed by a professional manager allows investors to gain exposure to these opportunities. Inward investment by a PE fund can be attractive to investee companies because: PE funds provide capital to help portfolio entities to grow; they allow investment in securities which are transitioning from public to private trading; or they can revitalise companies which are insolvent or facing financial