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High net worth individuals and institutional investors are looking more and more
to add diversity to their portfolios. In doing so, they are
looking to increase their portfolio return and with the stock market
being stagnant, they are looking beyond traditional securities.
Benefits of Private Equity Investing
Investors worldwide consider private equity an increasingly important
component of their overall asset allocation. Pension plan sponsors,
endowments, foundations and family offices have been investing in
private equity offerings for decades. They cite many reasons for doing
so, but the most important include:
- a diversified portfolio that includes private equity can
generate higher returns when compared to a portfolio comprised
of just traditional equity securities
- a private equity investment in a portfolio can reduce the
overall risk of that portfolio through non-correlated
diversification
- private equity investments are long-term investments and are
are relatively insulated from the short-term ups and downs that
we often associate with stock market.
- it gives the investor the ability to participate in a
portfolio
of privately held companies
It should be noted that there may be a greater dispersion of historical
returns from investments in private equity partnerships when compared to
a traditional stock/bond portfolio. It's essential that the general
partner effectively manage the risk so as to develop a portfolio where
the returns can exceed those of the stock/bond markets.
Structuring and monitoring private equity portfolios requires a wealth
of experience, discipline and specialized skills. The Christy Investment
Group is well-positioned to provide investors with the opportunity to
invest in private equity.
Summit
Equity Partners I
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Private Equity Investments offer qualified
investors an opportunity for:
- the potential to achieve exceptional rates of return
- the opportunity to further diversify an investment
portfolio
- A long-term investment alternative
- an investment with high-growth potential
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