Private equity is usually structured as a Limited Partnership (LP) or Limited Liability Company (LLC). Under a limited partnership, there are two groups: limited and general partners. Limited partners commit to capital to be invested by the
Investment Options
Hedge Funds Strategy: Macro, event-driven, relative value, and equity hedge strategies
Hedge funds rely on several strategies to make money. Hedge Fund Research, Inc. (HFRI) divides them into four categories:Before exploring hedge fund strategies, first of all, what is a hedge fund?It is an investment vehicle by
Leveraged Buyout (LBO): How it Works, Funding Sources, Criteria for Target
What's it: A leveraged buyout (LBO) is an acquisition with debt relied upon to finance the purchase. This strategy is usually adopted by private equity firms. They buy companies hoping to profit without relying too much on internal capital.
Private Equity: Examples, Strategies, Targets, Its Ways To Make Money
What's it: Private equity is an investment vehicle focused on buying shares of prospective private companies to gain control over management and other operational changes to increase profitability. Thus, the target company can be sold profitably
Hedge Funds: Examples And What Do They Do?
What's is: Hedge funds are pooled investment funds by private investors, established in limited partnerships, and managed by professional fund managers using various complex strategies to generate above-average returns on investment. They use
The Pros and Cons of Alternative Investment You Need To Know
Alternative investments complement our portfolio, in addition to conventional investments such as stocks and bonds. However, alternative investments have pros and cons, just like traditional investments.For example,
Institutional Investors in Financial Markets: Who Are They?
Who're they: Institutional investors are organizations or companies that put money into making a profit. There are various institutional investors in financial markets. Examples include banks, insurance companies, pension funds, foundations,
Alternative Investment: Characteristics, Types, Investors, Pros, and Cons
What's it: Alternative investment is an asset or instrument available as another possibility for us to generate returns and accumulate wealth. They do not fall into conventional investment categories such as equity, fixed income, and cash and
Derivatives: Examples, Purposes, Major Players, Markets For Transactions
What's it: Derivatives are financial instruments whose value is derived from one or more underlying assets. To put it another way, the price depends on the underlying asset. Thus, price fluctuations in the underlying asset ultimately
Common Stock: How it Works, Types, Features, Advantages, and Disadvantages
What's it: Common stock or ordinary stock is a security representing ownership in a company. Therefore, buying it makes us a shareholder. And as long as we hold it, we have the right to earn profits distributed as dividends without
Securities in the Financial Market: Equity, Debt, Pooled investment, Derivatives
What's it: Securities are tradable certificates or financial assets, which we can buy for regular income or sell later for a profit when the price goes up. They have many variations. Equities and bonds are the most
Financial Market Investors: Roles and Types
Who’re they: Financial market investors are those who invest money in financial markets to earn returns. They may be retail investors or institutional investors. They trade various financial instruments such as stocks, bonds,