Understanding Private Equity Characteristics

Medium Equity Markets And Instruments Private Equity

Private equity (PE) involves investments in private companies or buyouts of public companies that result in the delisting of public equity. As an investor in private equity, one typically seeks to gain access to capital markets, but these investments have unique characteristics and risks compared to public equity investments.

Regarding the nature of private equity investments, which of the following statements is true?

Private equity investments typically involve longer investment horizons and illiquidity compared to public equity investments.

Private equity investments are usually more liquid than public equity investments due to their structure.

Investors in private equity have the same level of access to information as those investing in public equities.

Hint

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