Private equity is a form of investment that takes place outside the public stock market through which investors gain an ownership stake in private companies. Known as an alternative asset, private equity lets accredited investors and institutional investment firms diversify their portfolios and take on more risk in exchange for the potential to earn higher returns than they might by investing in public companies.
Investors turn to private equity to diversify their holdings and aim for higher returns than the public market might provide. And while private equity funds certainly come with higher risk, historically, they have indeed resulted in higher returns.
According to the Bain & Co. report, over the past 30 years, U.S. buyouts (which are considered the largest subset of private equity investments) have generated an average net return of 13.1%, compared with the 8.1% return of the public markets. This comparison is based on the S&P 500 and the Long-Nickels public market equivalent method.
Here at Opes Family Office we help our clients to invest across industries in both established and growth-oriented businesses across the globe.
“We are constantly looking for situations where we are able to add value in a way that our competitors don’t.”
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