The best way for private investors to get exposure to private companies

SPONSORED CONTENT – Richard Hickman, director of investment and operations at HarbourVest Global Private Equity Limited, on the benefits of private equity fund-of-funds

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It makes sense to incorporate private companies into your overall asset allocation. As discussed previously, private markets have a solid historic record of outperforming public ones over the long run and offer an array of diversification benefits.

But what is the best way to gain access to these markets? Many investors already have at least some exposure to private companies in their portfolio. This may be via popular investment trusts which have some investments in specific unlisted companies alongside their holdings of larger public firms, or through trusts which invest directly in private companies. Others may have invested through venture capital trusts which focus on building portfolios of youthful companies, or perhaps even own shares in private companies directly through crowdfunding, for example.

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This material is solely for informational purposes and should not be viewed as a current or past recommendation or an offer to sell or the solicitation to buy securities or adopt any investment strategy. The opinions expressed herein represent the current, good faith views of the author(s) at the time of publication and are provided for limited purposes, are not definitive investment advice, and should not be relied on as such.

Disclaimer

Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as“may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, or “believe” (or the negatives thereof) or other variations thereof. Due to various risks and uncertainties, including those discussed above, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward-looking statements in making their investment decisions.

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