Delve into this expanding area of Alternative Investments offering access to more mature funds and the potential for a shorter path to returns.
Private equity investments have been known for being illiquid, with multi-year maturities. But that’s changing with the rise of a secondary market offering potential benefits to both buyers and sellers.
PRIVATE EQUITY SECONDARY MARKETS involve purchasing existing fund commitments and direct investment from partners seeking an early exit, generally within a 3- to 5-year timeframe. A private equity (PE) secondary investment has the potential to offer discounts to buyers and a shorter path to income generation than is typical with private equity funds in their early stages. These Alternative Investments are growing in popularity and offer the potential for broad diversification. Investors looking to explore the PE secondary market should become familiar with several factors, including market cycles, fundraising environments, key risks, pricing and due diligence.
For a deep dive on the PE secondary market, including the appeal, risks and access points, watch this episode of Let’s Talk Alts. In it, Mark Sutterlin, head of Alternative Investments for Merrill and Bank of America Private Bank, talks to Chris Perriello, managing director and global head of Secondaries at Carlyle.
Opinions are as of the date of the video and are subject to change.
Each video contains its own additional important information and relative risk disclosures that should be reviewed carefully.
Alternative Investments are speculative and involve a high degree of risk.
Alternative investments are intended for qualified investors only. Alternative Investments such as derivatives, hedge funds, private market offerings, and funds of funds can result in higher return potential but also higher loss potential. Changes in economic conditions or other circumstances may adversely affect your investments. Before you invest in alternative investments, you should consider your overall financial situation, how much money you have to invest, your need for liquidity, and your tolerance for risk.
When considering the appropriateness of mutual funds or Alternative Investments, please be aware that there are significant differences between these investments which will cause their investment portfolios, performance, tax treatment and other factors to differ. These differences include the types, availability and diversity of securities that can be purchased, economies of scale, regulations and other factors applicable to their management.
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The industry is evolving and seeking capital to grow.
Get to know this growing access point for above-market yield potential, where investors help finance middle-market businesses.
Commercial and residential property is one of the larger sectors in the marketplace. Private credit can offer exposure without having to maintain physical assets.
How Alternative Investment strategies can help investors tap the growth potential in tech breakthroughs.
Understanding how hedge funds operate can open up new investment opportunities for your portfolio.
How do you build an Alternative Investments strategy that stands up to the cyclical changes that affect markets?
Moving from asset allocation to manager selection and beyond.
A starter on this educational video series about Alternative Investments.
Educate yourself on the types of investments available, what they offer, and the risks involved.
New to Alts? Start here.
This broad category gives investors the chance to tap into the growth and income potential unlocked by infrastructure development.
Explaining how this investment strategy, known for its history of consistent returns, offers qualified investors exposure to private businesses. (Past performance is no guarantee of future results.)
Breaking down the strategy and the ways in which it’s differentiated from other investments.
