A portfolio company is a business that has received investment from a fund, such as a venture capital or private equity fund. It’s one of the companies that make up the fund’s overall investment portfolio. Typically, a fund invests in multiple portfolio companies to diversify risk and maximize returns. If you’re exploring what is a portfolio company or how portfolio companies fit into a fund’s strategy, they are the individual businesses that the fund backs in hopes of generating strong returns for its investors.

Building Blocks: Private Funds, Building Blocks: Starting a Private Fund, Building Blocks: DIVERSIFY, Private Equity Funds