It's rare for a private equity fund to become almost worthless. The article states that only seven private equity funds larger than $1 billion have ever lost money for investors, according to Cambridge Associates LLC, a leading investment adviser. It's more common for early-stage venture capital funds to suffer losses, and I know of a few funds of the 1999 to 2000 vintage years that lost a significant portion of their value.
This is a good reminder that investing in private equity, growth equity and venture capital funds is risky, and includes the risk that the fund may become worthless and the investor may lose their entire investments.
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