Investing in Private Equity: High Risk, High Reward for Institutions
The article discusses how institutions like pension funds and banks invest in private equity, which are securities not publicly traded. Private equity is a type of alternative investment that involves high risk and long-term commitment. Private equity firms manage funds from institutions and wealthy individuals to invest in companies. These investments are considered risky and illiquid, suitable only for those willing to lock in their capital for a long time and potentially face significant losses.