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Tag: Efraim Landa

Structure of a Private Equity Fund

The Structure of a Private Equity Fund

This guest post was written by Efraim Landa 

Efraim Landa is a venture capitalist and the founder of Effi Enterprises.

When talking about a private equity fund, usually they tend to be partnerships that have been formed by a PE firm.  Private equity funds can either be for general investments of businesses or they can also fund in different industries.  Most of the equity funds you see these days last around 10-13 years, which is usually an entire term, but they do vary by business.  When you get a private-equity fund the fund is closed when you the business have distributed all the funds back into the account for the partners of the fund.  As you can see this is a very useful and efficient way to get money for something like a small business or start-up, but they tend to be difficult to get unless you have a projected plan of action to show the partners you would/could/will make money from the business so that they can get their money back.  Private Equity funds tend to focus on one of the following: