Introducing Laurier Private Equity – Invest Like a Pension
In January, we advised you of our newest investment opportunity and depending on the portfolio, we made an initial allocation of between 5% and 8% of client accounts over $50,000 to this new investment pool. We want to explain in more detail why we have taken this step and how we believe it will help us achieve more consistent stable returns for your investment portfolio.
What is Private Equity?
The Private Equity Market is made up of thousands of companies worldwide that are privately owned and funded by pension funds, endowment funds, and wealthy investors through nancial institutions. These companies are not publicly listed or traded. According to Investopedia, the value of private equity rms was approximately $3.9 trillion in 2019. This represented an increase of over 12% from the year prior. There are more than 20,000 private companies employing 500 or more people in the U.S. today according to Blackrock (see below graph). This is up from only 5,000 in the 1990s. While there are more private companies today, the number of large public companies has fallen dramatically over the same time. Finding a way to access this growing market is critical to your investment success.