Private equity and hedge funds offer an appealing tax structure for those who can afford to invest in them. : In recent years private equity (along with its better-publicized cousin hedge funds) has emerged as one of the fastest and most efficient ways to move and foster capital. It lets investors influence or control a company, without worrying about such pesky, quotidian concerns as stock price movements and indignant proxy-holding shareholders. That’s the upside. The downside is that private equity is a game for only the wealthiest of investors.