AltMountain

Private equity vs hedge funds

AltMountain guide · Updated Oct 30, 2026

Both are private funds sold under Regulation D to wealthy and institutional investors, and both file Form D with the SEC. They work very differently.

Hedge fundsPrivate equity funds
What they ownMostly traded securities: stocks, bonds, derivativesControlling or large stakes in private companies
How you investWire the full amount at subscriptionCommit, then meet capital calls over several years
LiquidityMonthly or quarterly redemptions, often after a lock-upLocked up for the fund's life, commonly 10+ years
Fees (typical)Management fee on assets plus a performance fee, often subject to a high-water markManagement fee on committed then invested capital plus carried interest, usually over a preferred return
How returns are shownMonthly and annual returnsIRR and multiples (TVPI, DPI) by vintage year
Funds on AltMountain11,54210,036 (plus 4,284 single-deal vehicles)

Eligibility and minimums

Both use the same exemptions: Rule 506(b) or 506(c) to sell, and Section 3(c)(1) or 3(c)(7) to avoid registering as an investment company. The median stated minimum for U.S. private equity funds is $100K; for hedge funds see hedge fund minimums.

Figures are from Form D notices filed with the SEC between Oct 1, 2024 and Oct 30, 2026, excluding single-deal vehicles (SPVs, co-investments and "a series of" vehicles) unless noted. "Raised" is cumulative sales reported on Form D, not fund size or performance.

Which fits

Hedge funds suit investors who want liquidity and diversification from markets. Private equity suits investors who can tie money up for a decade in exchange for exposure to private companies, and who can meet capital calls on short notice.

See how to invest in hedge funds and how to invest in private equity.

Education, not advice. This guide explains general rules and market practice. It is not legal, tax or investment advice, not an offer or solicitation, and not a recommendation of any fund. Rules change; confirm details with the SEC and a qualified professional. Disclosures

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