Benefits and Risks of Private Equity Investing

The benefits are well known, primarily you generally get superior returns.

  • You can have access to inside information.

  • You can have influence over management and flexibility of implementation.

  • Leverage off the statement of financial position.

And the risks?

  • Illiquid investments

  • Dependence on key personnel.

  • Down-market performance

  • High management and performance fees

  • “Blind Pool” investing.