Debating dropping money into this fund. New to investing so how does the private equity deal work? I invest and if/when a company in it goes public I get shares?

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Posted by FleetFox504

Member since Nov 2013

395 posts

Posted on 8/26/25 at 1:45 pm to pittmanmt63

If you don't understand it...don't invest in it.

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Posted by pittmanmt63

Member since Jul 2025

31 posts

Posted on 8/26/25 at 1:59 pm to FleetFox504

I know I get shares apologies for the vague post where can I see if there is a lock up period, etc.? Or is that determined if and when the company hits IPO readiness stage?

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Posted by Free888

Member since Oct 2019

2855 posts

Posted on 8/26/25 at 5:31 pm to pittmanmt63

Generally when an IPO occurs there’s a 6 month lockup following the IPO (there have been cases of shorter lockups, but it’s uncommon). You also need to understand what type of equity Ark is holding. Is it Series A, B, mezzanine? Is it preferred or common. What is Ark’s investing style? If they’re a Series A investor, are they participating in follow on rounds or are they getting diluted? What are their fees?

As above, if you’re not familiar with this, it’s best to stay away.

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Posted by lsuconnman

Baton rouge

Member since Feb 2007

4440 posts

Posted on 8/26/25 at 7:10 pm to pittmanmt63

A 5% annual fee with a disclaimer of indefinite restricted liquidity. What’s not to like?

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Posted by slackster

Houston

Member since Mar 2009

91302 posts

Posted on 8/26/25 at 11:17 pm to lsuconnman

For a board that hates fees there sure are a lot of Private Equity threads around here.

Like someone said on CNBC the other day - why be an LP when you can be a GP? Just buy the PE firms themselves. They’ve significantly outperformed their funds in the aggregate.

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