Asset classes are broadly categorised on the basis of their risk and return into debt, gold, commodities, real estate and equity. The equity asset class is further sub-categorised as venture capital, private equity and public equity.
Venture capital is basically equity investments made in companies during the early stage of their growth and public equity refers to equity investments in listed companies. Whereas, private equity means equity investments in companies that are between the venture capital and the public equity stage. Hence private equity investments are made primarily in companies that have achieved size & scale and require capital for future expansion.