Private Equity Funds
Buying into an established, proven business before it lists. The company already works; the fund’s job is to scale it and sell it at a public-market multiple.
What it actually is
Category II AIFs investing in late-stage, profitable or near-profitable private companies — growth capital, buyouts, pre-listing rounds. Between venture risk and public-market pricing: proven businesses, private valuations, professional exit engineering.
The job it does
- Growth-stage exposure without early-stage mortality risk
- Entry at private multiples, exit at public ones
- Long-horizon compounding insulated from daily market noise
Why people use it
- Companies are past the survival question — risk is execution, not existence
- Pass-through taxation preserves capital-gains character
- Vintage diversification possible across fund commitments
What can go wrong
- Long lock-in — 8–10 years with capital calls
- Exit timing depends on IPO windows and M&A appetite
- J-curve: early NAVs understate; patience is structural
Does Private Equity Funds belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
Content on this site is for education only and is not investment advice or an offer to sell any product. Past performance does not guarantee future results. Please consult your Chartered Accountant and read all scheme documents before investing.