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Message: <blockquote data-quote="Daniel Boden" data-source="post: 29267" data-attributes="member: 487">Yeah I finished the Bocconi course last week! Ah I see yeah I read that article too!So CVC has raised a normal closed-end fund and are using the money raised from that to purchase various stakes in companies that they think they can add value to and then sell for a profit later on (in this case the 20% stake in Serie A).Blackstone has raised a debt fund and is proposing to use some of this money raised and loan it to clubs in the Serie A. Debt funds are a relatively new financial product and they generate returns from their investors' money by investing in bonds or deposits i.e. they lend the money and earn interest on the money they have lent which forms the basis for the returns they generate for investors.Otherwise, debt funds and more usual close-ended funds are structured in exactly the same way, the only difference is that the debt fund invests in private debt rather than equities.In terms of profitability, that's a hard question to answer. You could argue that a debt fund offers a less risky return on investment because bonds are generally a very stable asset, and if interest rates rise, then they generate an even greater return for the investor. However, obviously, if interest rates fall then the opposite is true.However, investing in equity has the potential to be incredibly profitable because, if the private equity firm is able to add value through the ways you will learn about through the Bocconi course, then it can generate a significant return on investment. Conversely, if the fund's investment does badly then that could have a much more damaging impact than a fall in interest rates.So as an investor, I would say it all depends on your appetite for risk and obviously what the PE firm's track record is.I hope that makes sense!</blockquote>

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

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