A private equity fund is a collective investment vehicle that raises capital from institutional investors (Limited Partners) to invest in unlisted companies with the objective of generating capital gains over a 3–7 year hold period. Managed by General Partners, it operates through a Limited Partnership structure with management fees and carried interest as GP compensation. PE funds operate across stages: venture capital (early-stage startups), growth equity (expansion-stage companies) and buyout (established profitable companies). Each stage has distinct risk/return profiles, valuation approaches and investor bases.

‍

Example: a Swiss mid-market buyout fund raises CHF 300.0 million from pension funds, family offices and fund-of-funds, targeting 8–10 Swiss and French SME acquisitions with CHF 20–80 million enterprise values. Over its 10-year life (5-year investment period, 5-year harvest), it targets a net IRR of 15% for LPs and a 2.0x money multiple — distributed after repayment of invested capital, the 8% hurdle rate and the 20% GP carried interest.

‍

Hectelion supports private equity funds in acquisition valuations, portfolio company due diligence and exit structuring across France and Switzerland.