Liquidity in private equity investments: The private equity secondary market

Private equity (PE) has arrived as a major player in the alternative investment universe and is now broadly accepted as an established asset class within many institutional portfolios. More and more investors are now considering establishing or significantly expanding their position in PE.

The fundamental reason for investing in private equity is to improve risk and reward factors in an investment portfolio. Investing in PE offers the investor the opportunity to generate higher absolute returns whilst improving portfolio diversification. This asset has also proven to provide better returns than stocks and bonds: PE has had average annual returns of 10.64% over the past 10 years.

The private equity secondary market, the purchase and sale of existing stakes in PE investments, is the only way for investors to exit early from their private equity investments. Secondaries offer owners of PE positions a path to liquidity and added flexibility in managing a portfolio of PE investments. Secondary buyers can access PE investments at varying stages of maturity, and obtain additional means of exposure to specific managers and strategies.

PE has historically produced attractive returns with fairly low principal risk over long periods of time. And while there is correlation between private and public markets, private equity in general has exhibited less volatility. Perhaps more relevant today is the fact that traditionally, PE has generally demonstrated less downside performance than conventional investments during periods of market dislocation.

When looking for the best returns, the best alternative for investors is to think outside the box and consider alternative assets with higher performance rates and greater benefits for investment portfolios.

Joining Konzortia Capital represents an investment in the booming Fintech sector that could bring investors a 447% ROI and liquidity within a year. Our subsidiary, Capitalista, will feature a PE secondary market for publicly trading private assets from around the world, where our investors will be able to trade our equity and liquidate their position.

A company like Konzortia Capital could seriously impact the portfolio of the right investor.

Are you one of them?

Find out more at www.konzortia.capital

Add Comment

Your email address will not be published. Required fields are marked *