5 Things to Know Before You Invest in Private Equity

Private equity is an alternative investment class. Private equity investors put money into buyouts of private or public companies, which in the latter case results in the delisting of the company.

Investing in private equity means you will deal with comparatively concentrated portfolios. You will need to make medium-term investments that can’t be easily reversed by selling, unlike for instance a mutual fund.

Because of the illiquid nature of the investment, private equity often boasts better return than public companies.

Here are five important factors you should consider to get the maximum profit when dealing in private equity investments.