What is the typical structure in Private Equity?

Investors, referred to as Limited Partners (LPs) in the Private Equity (PE) domain, allocate capital to the private equity firm. The Private Equity fund is set up by the Private Equity Firm (also called the Fund Manager or General Partner). They have the responsibility for fund management and actively participates by investing in the fund to demonstrate commitment and alignment of interests. The private equity fund strategically invests in various companies, curating a diversified portfolio.