What is a private equity firm and what are the key features?
There are lots of different private equity firms. Generally it is a vehicle to enable investment in other firms in return for equity (shares, etc) in that firm. There are examples where members of a family have grouped resources and then used that grouped resource to invest in new start business by forming a private equity firm or there are examples where people start a private equity firm to offer investment opportunities to sophisticated investors they know or are associated with. Another example is a fund set up, which people can buy into, which then invests in many different opportunities sharing risk and reward. Generally the rules regarding the operation of such are made by the Financial Services Authority in the UK. Hope this helps.
