Private equity holds companies longer but has clearer paths to return cash. Venture capital can leave investors waiting years with nothing, because IRR isn't money you can spend.
Yeah. And I think that's why there are way more comps between private equity and venture capital than I've seen prior. And there's a good quote also in the threads of you can't buy a car with irr. The holding periods across private equity, that's been longer, too, than the usual two to three, three to four years. But in most cases, you would expect private equity to have some sort of an exit or a landing spot and return money back. And I think that's where the differences between the two assets classes is. There is a fair share of fund managers where there is no money returned back at all, even if you wait.
