Private equity
Private equity: what it costs, what it returns, and who carries the risk
Private equity funds buy stakes in private companies, often with borrowed money, and sell them a few years later. The pages here set out what that costs investors, how the returns are measured, and what happens when a deal goes wrong.
What readers ask
- What is the dark side of private equity?
- Why does Warren Buffett not like private equity?
- Which is better, private equity or venture capital?
- What is the typical exit timeline for private equity firms?
- Can a normal person invest in private equity?
- What are the disadvantages of a buyout?
In preparation
Analysis
Private equity or venture capital: the same fund structure, opposite ways to lose moneydraft
Private equity and venture capital funds share one structure but lose money in opposite ways.
28 September 2026 ยท 10 min