Models and Building Blocks
Private Equity
Private Equity is a growing asset class which was once the preserve of the institutional or high net worth investor. It involves investing in a diverse range of private companies at various different stages of their development; from start-ups through to companies requiring capital for further development, to management buy-outs or management buy-ins.
The average life of an investment in the private equity world is about 4 years, but most private equity funds have a longer life than this. A private equity investment is normally realised through a trade sale or by an initial public offering. Therefore, private equity investments are, by nature, long term, and can be illiquid and high risk, but they offer the potential this is the potential for high returns. They are not suitable for all investors.
Only where it is deemed appropriate and apposite, we may invest a small part of a client's overall portfolio in a fund or a fund of funds managed by a specialist private equity firm. The intention is that such clients should obtain exposure to a well-diversified portfolio of unquoted companies at different stages of development.
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