Private equity vs. hedge funds

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do both types of organizations just take other peoples money and put it somewhere else to have that money make more money? I get investments but i do not understand the point I suppose, nor do I understand the *need* for the difference. Is there really a difference????

In: Economics

4 Answers

Anonymous 0 Comments

Private equity is a group of people with money (their own or others) wanting to own private companies. Like buy a company, sometimes a shitty one, polish it up, make more money. Sometimes by selling it off.

Hedge Funds are pools of money to invest in securities.

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