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                        (2)      distressed funding - distressed funding serves to finance a

                                 troubled company whereby the investors, who can, among
                                 others, acquire shares of the troubled company at a fraction

                                 of the par value, expects high returns from selling the shares

                                 at a considerably higher price once the troubled company
                                                            (7)
                                 emerges as a viable firm;

                        (3)      leveraged buyouts - this type of funding concerns acquisition

                                 of a controlling stake of a mature company, which is typically

                                 cash flow positive, with a view to improve its business and

                                 financial condition so as to resell it for profit to a third party
                                                     (8)
                                 or conduct an IPO;


                        (4)      real estate private equity - this type of funding focuses on
                                 investment in real estate and real estate investment trust

                                 (REIT), which generally requires greater amount of capital for
                                                                           (9)
                                 investment than other types of funding;  and


                        (5)      fund of funds - private equity fund of funds typically attracts
                                 smaller institutional and high-net-worth investors who desire

                                 to diversify their risk by investing in a selection of private

                                                                                              (10)
                                 equity funds rather than directly into an operating company.



                (7)
                  See Baker, Filbeck & Kiymaz,  supra note 4 (explaining that because of the economic
                  recessions, investors realized that they could take a risk and acquire distressed assets at
                  attractive valuations, and then be profitable).
                (8)
                  See BRIAN KORB & FINKEL, GETTING A JOB IN PRIVATE EQUITY: BEHIND-THE-SCENES INSIGHT INTO HOW
                  PRIVATE EQUITY FIRMS HIRE 9 (2009).
                (9)
                  See JAMES M. SCHELL, PRIVATE EQUITY FUNDS: BUSINESS STRUCTURE AND OPERATIONS 1-32 (2004).
                (1o)
                   See KOBE & FINKEL, supra note 10 at 12.


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