Definition
Private equity funds are stand-alone vehicles managed by private equity advisors. These advisors have a mandate and fiduciary duty.
The primary purpose of these funds is to invest pooled funds from multiple 3rd party Investors into stakes of private companies. Investors allocate money to one or multiple private equity fund managers over a long term horizon.
Most professional private equity investments are managed by specialised intermediaries that advise these funds.
Typical investors in Private equity funds include Family offices, Sovereign wealth funds, Financial institutions, Corporations, or even individuals, usually High net worth individuals.