Bain Capital boasts buy-out, venture-capital and hedge funds.

ECONOMIST: Public offerings are all the rage for private-equity firms

But there is no way to carve out venture capital from the bill, without risking buy-out shops wiggling their way through that hole too.

ECONOMIST: Private-equity firms battle to keep their tax perks

The Carlyle Group, for instance, encompasses not only a buy-out fund, but also venture capital, real estate, mezzanine loans and a fund focused on Asia.

ECONOMIST: Public offerings are all the rage for private-equity firms

Instead, Yale's largest equity investments are in private venture-capital and leveraged buy-out partnerships.

ECONOMIST: Investment strategies

But if the buy-out side of private equity faces big challenges, much of the venture-capital business is having an even tougher time, as the next article will show.

ECONOMIST: Beating the mid-life crisis

The fairest objection comes from venture-capital firms, says Mr Lerner, which depend more on carried interest than buy-out shops to incentivise managers.

ECONOMIST: Private-equity firms battle to keep their tax perks