A Private Equity (PE) fund is an investment vehicle managed by a private equity firm, structured to pool capital from investors for deployment into privately held companies. Most PE firms manage multiple funds across different strategies, vintages, or sectors.

Investors in private equity funds typically include institutional investors, such as pension funds, endowments, insurance companies, sovereign wealth funds, as well as family offices and high-net-worth individuals. These investors, known as Limited Partners (LPs), commit capital to the fund, which is then managed by the General Partner (GP)—the PE firm itself.

A typical fund follows a defined lifecycle, including a fundraising phase, investment period (often 3–5 years), and realisation phase, during which investments are exited and returns distributed.

PE funds are usually structured as closed-end limited partnerships, and operate under strict legal and financial frameworks to ensure fiduciary alignment between GPs and LPs.