FAQ: Your Top Questions About Private Equity Answered

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Reach Alternative Investments
November 22, 2023
min read
FAQ: Your Top Questions About Private Equity Answered

Private equity is increasingly capturing the attention of sophisticated investors across Australia. Yet while it offers an exciting avenue for potential growth, it also comes with its own set of unique considerations. We have compiled answers to some of the most frequently asked questions about private equity investment.

What Exactly is Private Equity?

Private equity refers to an asset class composed of equity securities and debt in operating companies not publicly traded on a stock exchange. Private equity investment typically involves direct investment into private companies or buyouts of public companies which result in the delisting of public equity. For more information about private equity funds, don't hesitate to visit Reach Alternative Investments' web page.

Who Can Invest in Private Equity?

In Australia, investing in private equity is generally accessible to what’s known as a 'sophisticated investor.' This term, as defined by the Corporations Act 2001, typically applies to those with an annual income of $250,000 or more in the past two years or net assets of at least $2.5 million. To learn more about becoming a qualified investor, you can visit this link.

What Makes Private Equity Appealing?

Many investors could be drawn to the potential for high returns that private equity may deliver. It’s a unique asset class that offers a chance to invest in the earlier stages of a company's life cycle. Remember though, past performance is not a guarantee of future results and every investment carries risk.

What are the Risks with Private Equity?

Investing in private equity does involve its own set of risks. Private equity funds are typically locked in for a period of time, often multiple years, which means there could be a lack of liquidity compared to other investment options, and the outcomes of private equity investments can be highly variable.
It's crucial to have a solid understanding of these risks before deciding to invest in this unique and complex asset class. We recommend reading

How Much Can I Invest in Private Equity?

Investors at Reach Alts can access private equity funds for as little as AU $15,000. This is made possible through our mission to strive towards making investing in private markets easier, better and more transparent for everyone. You can learn more and register here.

How Can I Start Investing in Private Equity?

With Reach Alternative Investments, we simplify the process for you. Identified top-tier private market funds are presented to you after thorough research and analysis. You can view the details of each fund, interact with our investment team and even sign all required documents right from our investor portal.

Remember, while private equity offers unique opportunities for potential returns, it's vital to fully comprehend the risks and considerations before investing. Reach Alts is here to guide you through all the necessary steps to strive for a potentially better, safer investing experience.

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