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6. CONCLUSION

The private equity industry is relatively young but expanding rapidly. Although the industry is dominated by a handful of large, established institutions with billions of dollars under management, opportunities exist for start-up ventures to manage smaller funds. Experienced professionals in other industries can create new management companies and microfunds to finance projects in the technology, energy, entertainment, real estate, and agribusiness sectors, among others.

However, starting any new venture is a high-risk activity, and the risks are especially high in the private equity industry because fund managers control other people's money. The good news is that the information in this publication should help fund managers minimize the risks and improve their chances for success.

Good luck!