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*Private equity funds generally invest in large companies with the intent to restructure and sell the firms for a gain. These investments usually entail the acquisition of private companies, but they may also involve acquiring controlling interests in public companies through stock purchases. Private equity funds usually employ a long-term, hands-on approach to investment.
*Venture Capital funds
*Hedge funds, alternatively, focus on achieving high returns through risky, short-term investments that may come in the form of stocks, bonds, commodities, derivatives, and anything else that promises a quick gain. Accordingly, hedge funds tend not to adopt the same hands-on approach to investment that venture capital funds and private equity funds take.  
==What is Carried Interest?==
Recall the structure of a private investment fund.
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