Reference no: EM132919748

Problem a) Define and contrast private equity and venture capital.

Problem b) Who are the main investors in private equity? Explain why they are interested in this investment.

Problem c) Explain how private equity managers are typically remunerated and identify any issues that this may cause.

Problem d) Discuss the exit strategies that private equity firms can use to exit an investment.

Problem e) Explain how private equity has contributed to solving the sorting and incentive problems within investment practices.