some basic questions about PE
what do multiple funds in a PE firm mean?
Do the funds represent the characteristics of companies they invest in? For example, XIV is for large caps only, XIII for mid caps, XII for small caps, XI for pre-revenue companies (tech companies), II for companies that generate abc EBITDA per year, X for companies in NYC etc.
When PE firms take money from LPs, do the LPs care which funds their money goes into? I would have thought that LPs are like "we want a certain risk exposure to balance our portfolio ..." so it would only make sense for their money to be in certain funds in order to derive such an exposure
What do the numbers of the fund size represent? Is it like the amount of money it has from day 1 the fund is opened? The total amount of capital invested into the companies at entry?
My understanding is that a fund is 'opened' when the PE firm has finished raising capital so it can now start investing in companies for that fund. When a fund closes is that when it has exited out of all its portco companies in that fund? or when it no longer accepts capital for the fund
sorry for the long-winded questions, appreciate if anyone can provide some color, again many thx