The investment landscape is continually evolving, offering new prospects that captivate both individual and institutional investors. We are observing an emerging trend within Australia's investment field - the synergy between family offices and private equity. This article is designed to shed light on this growing preference. It will also provide a roadmap for potential participation through Reach Alternative Investments.
Family offices have been demonstrating increased interest in private equity investments due to the potential for capital growth and, in some instances, the opportunity to influence the strategic direction of their portfolio companies. Our Private equity 101 offers a comprehensive understanding of this unique asset class's potential benefits.
The use of professional expertise within a private equity fund might enable family offices to diversify their portfolio with confidence, particularly into new areas or business where the family office does not have much of a presence of expertise.'
Family offices usually get involved in private equity by making direct investments, co-investments with fund managers, or investing in fund-of-funds products. At Reach Alternative Investments, we have streamlined this process, offering a legal, robust, and streamlined approach for sophisticated investors, including family offices, to access top-tier private equity funds globally. We allow family offices to further diversify their private market exposure, with streamlined administration and a curation of top-tier global private equity funds.
Throughout the year, Reach Alternative Investments provides a series of opportunities to invest in internationally recognised private equity funds. However, you do need to be a qualified investor as defined in the Corporations Act 2001 to access these. Sign up and take the initial step towards potentially diversifying your investment portfolio.
All investments carry the risk. Private equity is no exception. Some of the risks specific to private equity include liquidity risk (the possibility you may not be able to sell your investment when you desire), company failure (which can result in total loss of investment), industry risk (impact of changes in government regulation, economic conditions or consumer preferences on your investment), and leverage risk (many private equity investments use borrowing to potentially enhance returns, but this can escalate losses). Gauging your risk tolerance, being up to date with the latest industry trends and consulting a trusted financial adviser is pivotal.
In recap, investing in private equity could carry a host of potential benefits for family offices, from the potential for substantial returns to possibly diversifying portfolios and influencing company direction. However, as with any investment decision, understanding the risks, your financial objectives, and most importantly, the complex intricacies of the asset class is vital. At Reach Alternative Investments, we aim to make private equity more accessible, safer, and better suited to you. Do reach out to explore what our world of private equity has in store, and allow us to guide you through this unique investment landscape.