Private Equity Funds

Private Equity Funds
 By Finance Ocean

What type of private equity fund specializes in very early-stage start-up companies?

Pick an answer:

1. Venture Capital Fund
2. Growth Capital Fund
3. Buy-Out Fund
4. Fund of Funds

Answer: # 1
Explanation: A venture capital fund provides capital early-stage companies. A growth capital fund provides capital to more mature companies looking to continue their growth.

Buy-out funds usually acquire entire companies in order to restructure or reorganize them to create more value. Fund of funds invest less directly in companies and instead fund other types of private equity funds.

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