Why I'm in no rush to join the private equity club

Just as private equity is beginning to open up to retail investors, the conditions that underpinned its investment strategies are starting to unravel. Merryn Somerset Webb explains why she's investing elsewhere.

IN the past six weeks I've been given complimentary membership to two "exclusive" clubs. Initially I was flattered. Then I realised I had no reason to feel remotely special. New "private clubs" open every day in central London. It is a hugely competitive market in which only a few establishments can get sufficient buzz going to be able to actually refuse people they deem unsuitable (think Soho House).

The rest have to go out begging people to be members. So, when I stop to think about it, I don't want to be a member of any clubs so nonexclusive that they have to ask me to join rather than waiting for me to beg to be let in. No vetting? No being put up and being seconded? And no fee? It suggests they are having trouble getting paid-up members and if the movers and shakers aren't joining why would I want to?

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