5 Things to Know Before You Invest in Private Equity

High fees

There is a management fee component to the private equity funds that typically ranges from 1.5% to 2% of the total commitment. The fees also include “carried interest” or a share of the total profits, which is generally 20%.

If you want to have a successful investment experience after paying the fees you must invest with high-quality private equity managers. A fund-of-funds option is the best way to gain access to these managers.

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