Cryptocurrency Q&A
Why are PE funds not perpetual?
Why are PE funds not perpetual?
SsamziegangSerenadeMelodyHarmony
Tue Feb 25 2025
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6
answers
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PE funds are not perpetual primarily due to their investment structure and exit strategy. PE funds invest in non-public companies with the intention to sell their holdings through IPOs, mergers, or acquisitions, realizing profits for investors. This approach necessitates a finite lifespan for the fund, as opposed to a perpetual structure.
6 answers
SamuraiHonor
Thu Feb 27 2025
Private equity funds usually have a specific timeframe for exiting each investment.
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BlockchainBaron
Wed Feb 26 2025
This is largely driven by the incentive structure in place for the fund managers.
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Giulia
Wed Feb 26 2025
Certain exit routes, such as initial public offerings (IPOs), may not be viable during certain periods.
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BusanBeautyBloomingStar
Wed Feb 26 2025
The general partner may aim to raise a new fund after a certain period.
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GwanghwamunGuardianAngelWingsBlessing
Wed Feb 26 2025
Market conditions can significantly impact the timeline for exiting.
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