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Private equity as an asset class

Private equity offers investors the opportunity to generate attractive returns compared with other asset classes, while improving portfolio diversification.

Private equity differs considerably from public equity, typically generating substantially higher returns for investors. Some of the key drivers of private equity's success are:

• The long term nature of private equity investments: allows investors enough time to implement and effect fundamental and lasting change initiatives
• Incentive structures: company executives as well as private equity managers are strongly incentivized to achieve attractive returns for their investors
• Corporate governance:  private equity managers are empowered to create their own conditions for success through active ownership and rapid decision making
• Privately available information: allows private equity investors to base investment decisions on a greater depth of information

While the ability of private equity to generate higher absolute returns is one of its main attractions, the introduction of private equity to a balanced portfolio can also enhance the risk and volatility characteristics of a portfolio.
 

Investments offer you opportunities, but also involve risks. Your investment profile is the decisive factor. Please discuss these possibilities with your investment advisor.