Connections between hedge funds and private equity?

Many people think that private equity firms and hedge funds are very related to each other and that they had the same reaction on this financial crisis. But that's not fully true. The last few years a connection is been created because both financial institutions formed an alliance or joint ownership structure in order to share information, but their core activities are still different from each other. Private equity firms invest in companies who are not publicly traded and with a majority of control, in order to make these companies more profitable and competitive on a longer term. Hedge funds only take a small minority and try to influence the stock markets to make some profits on the short term. The added value for private equity firms is only created after 5 to 10 years, so their influence on this crisis in still unknown and not relative because there actions on the longer term could be positive. But for hedge funds this is not the case, their actions have a negative effect on this crisis.

http://richard-wilson.blogspot.com/2007/08/hedge-funds-and-private-equity.html