Transatlantic Private Equity

Private equity funds help propel the economies of the United States and the United Kingdom. “Traditional” U.S. private equity firms manage investment capital greater than $730 billion; U.S. hedge fund assets add approximately $500 billion. U.K. private equity funds manage over £135 billion/$250 billion. European private equity fund-raising may approach £200 billion/$380 billion by 2006. Principal categories of transatlantic private equity or “alternative investment” funds include 1) venture capital funds; 2) leveraged buyout funds; 3) hedge funds; 4) fund-to-funds; and 5) captive funds. U.S. and European funds are often structured as limited partnerships in which fund managers organize the general partner entity. Global private equity firms are emerging in an increasingly interdependent global economy.