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Regardless of
kind of Private Equity Investing that takes place it is clear that
potential for large returns exists. A downside is also present, however, sound due diligence and understanding
company you are investing in will reduce
risk of losing your money.
How Private Equity Investing plays a part in your portfolio
Large institutional investors have always been drawn to
private equity investing. It has
potential to offer long-term returns that are superior to standard stock investing. Stock market investment cannot make
returns that Private Equity Investing can.
The Tech Boom that ended in 2001 was an example of Private Equity Investing occurring on a large scale. Venture Capitalist invested millions and received tens of millions in return for a successful floatation. This is why Private Equity Investment offers such great potential, especially is your invested company decides to become listed. You then get a share of
profit generated.
For
average investor to have private equity play a major part in their portfolio they would need to invest in a Private Equity Fund. This is good option to consider as traditionally Private Equity Investing has been
domain of
largest investors due to
size of investment required and long investment terms. Private Equity is highly illiquid and
scale needed to achieve an appropriate degree of diversification can be immense. A Private Equity Fund can offer you great diversification in a number of Private Equity investment with all
due diligence conducted for you.

Written & published by Murray Priestley, Managing Partner of Portofino Asset Management, private investment managers and publishers of the Portofino Report. www.portofinoasset.com