INSIGHTS | Investing in private vs public equity – can you have the best of both worlds?
Managing Director – HMC Capital Partners
Private equity investments are becoming an increasingly mainstream component of a balanced investment portfolio, providing valuable diversification benefits to “traditional” listed equities and bonds. However, the downsides to private equity include the lack of liquidity and the significant capital required to acquire control of a company.
Listed equity investments have long been used in client portfolios, providing daily pricing and liquidity for investors, however depending on the strategy employed (active or passive) returns are largely dependent on a manager picking the right stocks or the broader direction of the market rather than specific skill and involvement of the manager in its portfolio companies.
In this article we outline the key differences between investing in listed and private equities and consider opportunities to leverage the advantages of both investment strategies.
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This article does not constitute, and may not be used for the purposes of, an offer of securities or interests of any kind to any person or an invitation to any person to apply for the issue of securities or interests of any kind.
This article is for general information only and not intended to, and does not constitute tax, financial, legal or personal financial product advice. Recipients should consider obtaining their own independent financial, tax, legal and investment advice having regard to their own particular circumstances before making any financial or investment decisions. This article does not, and does not purport to, take into consideration the investment objectives, financial situation or particular needs of any person. Except for any statutory liability which cannot be excluded, HMC Capital, the Manager and their respective affiliates, related bodies corporate, directors, officers, employees, agents and advisers expressly disclaim all liability for any direct or indirect loss or damage which may be suffered by any person in relation to, and take no responsibility for, any information in this article or any error, misstatement or omission from it.