Similarities in compensation structure for hedge funds, venture capital firms, and private equity investors. Created by Sal Khan. Watch the next lesson: http... Summary of Hedge Fund vs. Asset Management. Hedge fund managers face less regulatory burden which gives them freedom to capitalize on a wide range of investment opportunities that are usually not available for other regulated asset management vehicles such as mutual funds.
Private equity can be defined as the funds that the investors take into use for the acquisition of public companies or to make an investment in private companies, On the other hand, hedge funds can be defined as privately owned entities that raise funds from the investors and then invest them back into financial instruments bearing complicated portfolios.