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All Articles by Kaja Kwasniewska

How Private Equity Chooses Portfolio Companies

Different private equity funds have different investment strategies. Before you invest in a PE fund, you need to make sure you understand what that fund’s investment strategy is. A PE firm’s investment strategy starts with its investment mandate. An investment “mandate” is revealed in the marketing materials and/or legal disclosures that you, as an investor, need to review before ever investing in a fund. Stated simply, many firms pledge to limit their investments in particular ways.