The following statements regarding private equity funds are correct, except: The most common categories of private equity are venture capital, leveraged buyouts, and mezzanine debt. Late-stage companies are producing and shipping goods and are often two or three years away from an initial public offering. The normal practice is to take 20% of the profits for the general partners (the fund managers) and 80% of the profits for the limited partners (the investors). A major reason that entities invest in private equity funds is the safety of the investment