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When do you consider Private Markets for your portfolio?

Posted on 5/4/24 at 3:22 pm
Posted by lynxcat
Member since Jan 2008
24174 posts
Posted on 5/4/24 at 3:22 pm
Thoughts on private market / private equity investment role in a total portfolio?

It isn’t something I’ve considered up to this point but friend who is an FA mentioned some clients going this route.
Posted by SloaneRanger
Upper Hurstville
Member since Jan 2014
7793 posts
Posted on 5/4/24 at 5:23 pm to
These can be very illiquid, and are unsuitable for most people. Unless you have a lot of money and know how to evaluate these investments, I’d steer clear.
Posted by Rize
Spring Texas
Member since Sep 2011
15826 posts
Posted on 5/4/24 at 5:51 pm to
quote:

Thoughts on private market / private equity investment role in a total portfolio? It isn’t something I’ve considered up to this point but friend who is an FA mentioned some clients going this route.


I’ve got a nice little chunk invested in private equity but it’s the company my wife works for. She got a a good amount of shares when she started and I’m in the process of buying 30% more on top of what she was given.
Posted by lynxcat
Member since Jan 2008
24174 posts
Posted on 5/4/24 at 6:06 pm to
Illiquidity is my first concern. He noted a “funds of funds” with quarterly ability to withdraw investment.
Posted by kaaj24
Dallas
Member since Jan 2010
614 posts
Posted on 5/4/24 at 6:38 pm to
Can be lucrative but never a free lunch. Just understand what is the underlying assets you’re investing.

Many times investors in these deals if they don’t perform have capital calls. Don’t make the capital call and it reduces your ownership.





Posted by LSUFanHouston
NOLA
Member since Jul 2009
37140 posts
Posted on 5/4/24 at 7:34 pm to
Step one is to be an accredited investor
Posted by lynxcat
Member since Jan 2008
24174 posts
Posted on 5/4/24 at 7:45 pm to
Done
Posted by JL
Member since Aug 2006
3046 posts
Posted on 5/4/24 at 7:49 pm to
I’ve done a good bit of this the past few years. If you live in a big city look for an angel network to start meeting like minded people and gain access to investment opportunities.
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