ADVERTORIAL - Demystifying Private Equity: Five Things You Need to Know Moonfare PrivateEquity
The often-opaque nature of private markets has left some retail investors questioning whether adding these asset classes to their portfolio is right for them.
As well as buyouts, PE also encompasses two other categories; venture capital and growth equity. Venture investing focuses on backing several early-stage companies looking to scale up and disrupt existing industries. Moonfare’s latest whitepaper dives further into what venture capital can offer. These capital calls, also known as drawdowns, take place as opportunities arise, usually spanning over a period of a few years. Your commitment is therefore spread out over that investment period, rather than due on signing.
PE managers have also become much more hands-on with their investments, focusing on operational value creation rather than leverage to drive performance. These strategies can include divesting non-core products, diversification or improving supply chain efficiency.