Hedge funds and PE firms aren't typically direct competitors. The goals and risk profiles of the funds don't typically align (and hedge funds aren't monolithic

Hedge funds and PE firms aren't typically direct competitors. The goals and risk profiles of the funds don't typically align (and hedge funds aren't monolithic as a group, either), but beyond that, there are typically regulations governing which entities can invest in which type of funds. The LPs in big PE funds tend to be large institutional investors--pensions, endowments, and the like. Hedge funds tend to have mostly high-net-worth clients.