A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity. At inception, institutional investors make an unfunded commitment to the limited partnership, which is then drawn over the term of the fund.
A private equity fund is raised and managed by investment professionals of a specific private equity firm . Typically, a single private equity firm will manage a series of distinct private equity funds and will attempt to raise a new fund every 3 to 5 years as the previous fund is fully invested.
