Private Equity: Episode 4 - Key Players in Private Equity

After the math of Episode 3, let’s now take a look at the various key players in Private Equity.

The Management Company (General Partner) plays a central role: it is responsible for raising capital and making investments.

Next are the Investors (Limited Partners, LPs), who contribute the funds to the management company. These investors can be individuals, family offices, businesses, or institutional investors (banks, insurance companies, pension funds, sovereign wealth funds, etc.).

The Investment Vehicle refers to the structure that receives funds from investors and makes investments in assets (such as companies, infrastructure, or artworks).

These investments are managed by the management company’s teams, following a previously defined and presented investment strategy.

To operate legally, a management company must obtain approval from the Financial Markets Authority (AMF). This requirement ensures that the management company has the necessary organization and resources to carry out its activities properly.

The portfolio of an investment fund represents all the investments made by the fund. As these investments grow, they generate value for the investors.