If you are interested in investing, private equity could well be an option. Before digging dip in this type of investment it is good to understand what private equity is:
What is Private Equity?
Private equity refers to investments made in non-public companies through privately negotiated transactions. In private equity investor’s interests are usually aligned with those of management. This combined with long term investment horizons and hands on support for a company’s executive team.
Private equity managers typically specialise in market sectors in which they already have extensive investment experience. They use that expertise to manage assets through economic cycles, as well as to identify attractive investment opportunities.
Private Equity Managers work closely with a company’s management to implement change and increase the company’s value. Once this has been achieved, private equity managers reposition the company for sale at higher value. The spread of performance in private equity is much wider than in other asset classes. Also, managers have a significant influence on investment performance. This makes the selection of managers critically important.
Is private equity safe?
There are a number of routes into private equity, each with its own opportunities and risks. Investors should always consider advantages or disadvantages and remember that, as with all investments, past performance does not guarantee future results.
Who can invest in private equity?
Investors may choose to invest directly in a private equity funds, but they are expected to lock in their capital for a long time period – usually 7- 10 years in the UK and even more 15 years in the USA. Also, many private equity firms will only accept high minimum commitments to their funds.
Why invest in private equity funds?
For investors looking for attractive risk-adjusted returns over the long term, private equity has strong credentials and can offer significant benefits when added to a wider portfolio of assets.
Gateway2Entreprise is an Investment Hub organisation that operates within SME sector. For further information please check our website www.gateway2entreprise.co.uk If you are looking to invest your money and considering that next ‘BIG IDEA’ especially in Technology or Fintech our ‘SANDPIT’ then as our Avatar is Angel Investment please feel to log in to see our Summer Investment Portfolio 2018