Achieving investments in private equity with minimal funds.
Private Equity (PE), an asset class known for its involvement in direct investment in company capital without going through the capital market, has been one of the strongest performing sectors in the current year following the Corona crisis. With a gain of around 30% since the beginning of the year, PE has outperformed many other asset classes.
Warren Buffett's Berkshire Hathaway is a notable player in the PE sector, with a focus on strategic investments. Other prominent names in the industry include Blackstone, Brookfield, and KKR. The Partners Group, a global team of experts, also works to identify the most attractive trends across all sectors and regions, and invest in the companies with the greatest potential to benefit from them.
However, when it comes to Private Equity UCITS funds, specifically those accessible to average investors, the landscape is less clear. While these funds aim to provide access to private equity-style investments with greater liquidity and regulatory oversight compared to traditional PE funds, there is limited direct information available regarding top-performing Private Equity UCITS funds for the average investor.
Equity- or thematic-focused UCITS ETFs often outperform broad indexes in the short term but carry different risk profiles compared to private equity. Global equity UCITS funds typically deliver returns in line with global equity markets, such as the MSCI World Index.
Private Equity UCITS funds may offer alternative risk/return profiles but with less public performance data and often higher fees or complexity, limiting their accessibility for average investors. For those seeking Private Equity exposure via UCITS, it is advisable to review specific fund factsheets, focusing on historical returns, fees, liquidity, and risk. Comparing these against global equity benchmarks such as MSCI World or S&P 500 can help assess relative performance.
Investors might also consider diversification with a mix of UCITS funds, including global equities, thematic ETFs, and specialist alternatives. For example, the iShares Listed Private Equity UCITS ETF bundles a total of 73 companies in the sector.
While no widely recognized or publicly available Private Equity UCITS funds stand out as top performers compared to global equity market benchmarks, the Partners Group Listed Invest.-Listed Priv. Eqty, a fund within the Partners Group Private Equity team, has achieved the best performance in the past decade with an average annual return of 15%. This fund offers participation in the positive performance of the private equity sector and provides a well-rounded selection of globally listed private equity firms and financial services providers.
Investment opportunities in the PE sector for "average" fund investors also exist through conventional UCITS funds, such as DNB Private Equity, SEB Listed Private Equity, and iShares Listed Private Equity UCITS ETF.
Private Equity can be beneficial for start-ups by providing quick access to capital and enabling rapid growth. It can also offer high returns for investors, but it comes with corresponding risks. Struggling, barely creditworthy companies can also receive a financial boost and be rehabilitated through Private Equity.
From Europe, Amplifon, the Italian hearing aid retailer, stands out. With around 11,000 sales points in 28 countries, Amplifon has taken over numerous specialist stores in Germany since summer 2015.
In conclusion, while the landscape of top-performing Private Equity UCITS funds may not be as clear as with other asset classes, the Partners Group Listed Invest.-Listed Priv. Eqty and conventional UCITS funds like DNB Private Equity, SEB Listed Private Equity, and iShares Listed Private Equity UCITS ETF provide opportunities for average investors to participate in the private equity sector. As with any investment, it's essential to research, understand the risks, and make informed decisions.
- Economic and social policy should address the limited information available about top-performing Private Equity UCITS funds for average investors, as this information impedes their ability to make informed decisions on investing in such funds.
- Private-equity investing, through funds like the Partners Group Listed Invest.-Listed Priv. Eqty, DNB Private Equity, SEB Listed Private Equity, and iShares Listed Private Equity UCITS ETF, offers average investors an opportunity to invest in the real-estate and finance sectors, often associated with high returns in the private-equity industry.
