Private Investments: Potential Rewards for Individuals and Institutions
Private investments include the equity and debt obligations of companies that are not traded on organized exchanges. They’ve been one of the fastest growing asset classes over the last 10 years.
Private Investments: Potential Rewards for Individuals and Institutions is a white paper that explores why private investments are so popular, defines the various asset categories (private equity, private debt, private real assets, including private real estate, such as core properties, value-added properties, and opportunistic properties), looks at the partnership structure, examines how funds can produce attractive returns for the patient investor, and considers the risks to weigh against the potential benefits.
“Even though there are far more private companies than publicly traded companies, many investors are not familiar with the unique opportunities for growth and diversification in the private investment market,” says Steven D. Jones, CFA®, CFP®, CAIA®, and director of institutional investment services and private investment research for CliftonLarsonAllen Wealth Advisors, LLC. “This white paper helps to demystify private investments and bring the potential rewards into sharper focus.”
How we can help
There are many asset categories clamoring for the attention of individual and institutional investors, but not all are equally compelling. As discussed in this paper, private investments have unique characteristics and present both risks and opportunities not readily available in publicly traded investments. Consult a professional with significant experience in this space as a first step in exploring the potential rewards of private investments.