Investing Your SMSF in Private Equity: A Comprehensive Guide

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Reach Alternative Investments
November 2, 2023
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2
min read

A self-managed superannuation fund (SMSF) allows Australians to have full control over their retirement savings. One of the many advantages of running your own SMSF is the freedom to invest in a wide range of asset classes. As more and more investors seek to enhance their portfolio's performance, integrating private equity into an SMSF portfolio has become a popular choice. This article will explore how Reach Alternative Investments can help those managing their own SMSFs invest in top-tier global private equity funds in a responsible way.

What is private equity and how does it fit into an SMSF portfolio?

Private equity involves investing directly into private (non-publicly traded) companies or conducting buyouts of public companies with the objective of making them private. With the potential for high returns and diversification benefits, integrating private equity into your SMSF can be an excellent way to enhance your portfolio's health and resilience over time (past performance is not indicative of future performance). Reach Alternative Investments makes investing in this asset class seamless for the sophisticated and professional investor base in Australia.

Why should SMSF trustees consider alternative investments?

Alternative investments, like private equity, can offer unique opportunities unavailable in traditional asset classes like stocks and bonds. These investments often feature a low correlation to traditional markets, which can provide significant risk-weighted returns and help in reducing portfolio volatility. Reach's expertise and effective legal structure allow you to diversify your investment strategy in a straightforward, transparent way.

How do I invest my SMSF in private equity with Reach Alternative Investments?

At Reach Alts, we conduct comprehensive research throughout the year to curate a select number of top-tier private market funds from world-leading fund managers, which we then offer to our investors. Our legal structure in Australia enables us to provide these investment opportunities in a responsible manner. As an investor, you'll enjoy full access to view these opportunities, assessment details of each fund, and engage with our investment professionals, all through our intuitive portal.

What are the benefits of Reach Alternative Investments for SMSFs?

As a Reach Alts investor, you'll be able to invest in our curated list of global private equity funds with an initial investment starting from a minimum of AU $15,000. Moreover, our streamlined digital process allows you to view potential investments, commit, sign documents and receive tax reporting, all in one place. Reach Alts is much more than a platform; we're your partner in investment, providing access, and ease for you to create a robust private market portfolio.

What are the potential risks of investing in private equity?

While private equity does hold the potential for high returns, it comes with certain risks, such as capital loss, liquidity risk, and the higher complexity and costs associated. It is important to engage with knowledgeable and experienced professionals, to properly understand these risks and make informed investment decisions.

How can I ensure responsible investing?

At Reach Alts, we are dedicated to opening access to private equity investment in a prudent and responsible manner. We provide comprehensive information about each fund, including details about the investment strategy, and encourage you to engage with professional advisers for any queries or concerns. Our ultimate goal is to make your move into private equity markets easier, better and more transparent.

Is Reach Alternative Investments right for my SMSF?

The decision to invest in private markets should align with your SMSF's investment strategy and risk tolerance. Reach Alternative Investments makes it easier for sophisticated and professional investors to include private equity in their SMSF portfolio without having to maneuver through traditional barriers. If you are willing to step into the world of high potential returns and diversification benefits, we, at Reach Alts, are ready to help you on this journey.

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