Listed Direct Private Capital Investment Company

The majority of listed private equity companies are organized as listed direct private capital investment companies. The term “direct” indicates in this context that the company is invested directly in the underlying companies, and not via limited partnerships. Through the purchase of a share traded on an exchange, the investor gets exposure to a diversified portfolio of private companies directly held by the listed company. In contrast to an investment in a traditional limited partnership, this organizational structure offers an investor not only a direct exposure to a diversified portfolio of private companies but also a participation on general partner revenues generated by the additional fund management business.