Competitive Enterprise Institute | 1899 L ST NW Floor 12, Washington, DC 20036 | Phone: 202-331-1010 | Fax: 202-331-0640
Hedge funds and private equity are vehicles for wealthy investors to take risks and potentially reap high returns. But the benefits of these types of funds—and of funds that combine features of both—extend beyond their investors to all entrepreneurs and shareholders. Private equity funds build wealth in distressed and startup companies. Hedge funds have forced incentivized companies to create more wealth for shareholders through streamlining—cutting costs and, when necessary, selling off divisions.