g. explain the stages in venture capital investing, venture capital investment
characteristics, and challenges to venture capital valuation and performance
measurement;
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Private equity investments are equity investments that are not traded on exchanges. private equity definition is now extended to making equity investment through bulk deals involving negotiated prices.
Venture capital falls under private equity definition. Venture capital investments are investments in business ventures from idea stage through expansion of an unlisted company already producing and selling a product. The exit from the investment is made through a buyout or an initial public offering.
Investments in private equity are done through limited partnerhships. Limited partnerships allow participation in funds with limited liability (the initial investment) and management of the fund by general partners who are private equity experts.
Funds of funds are available in private equity funds.
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