Benefits of Private Equity Investing
Institutional investors worldwide consider private equity an increasingly important component of their overall asset allocation. Pension plan sponsors, endowments, foundations and family offices have participated in private equity investing over decades for many reasons, the most important of which include: a diversified portfolio of private equity can generate highly attractive returns compared to a portfolio of traditional marketable securities; private equity provides a source of diversification that can reduce overall portfolio risk; private equity focuses on long-term investments that are relatively insulated from short-term valuation fluctuations associated with the public securities markets; and investors can participate in a vibrant market of privately - held companies, certain types of which are not generally found in public securities markets.
At the same time, investors should be aware of the greater dispersion of historical returns from investments in private equity partnerships as compared to portfolios of traditional securities—and need to have a program that effectively manages these risks in order to develop a portfolio where returns can exceed those available in the public markets.
Structuring and monitoring effective private equity portfolios requires a wealth of experience, discipline and specialized skills. Abbott Capital is well-positioned to provide investors with the opportunity to invest in private equity.
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Potential for attractive rates of return
