If you are not getting the returns you expect, do you move into different forms of assets…perhaps private equity?
Michael Mackenzie writes in the FT that capital may look to private equity to boost returns. Whilst at face value it’s a good story, it doesn’t come without risk. What happens if a wall of money looks to private equity for greater returns? Well, just revisit economics 101; demand and supply. You could overpay.
Whilst most investors will require investment guidance for access into an alternative asset class, it’s still opaque.
There is no substitute for investment due diligence especially if you may be buying something you don’t fully understand.
The basic questions about risk are so vital to be answered…but beware. If you are in search of better returns, you can easily persuade yourself Private Equity is the answer. If others are doing it, why can’t you? And you only ever really hear about success stories, not the duds! Recognising your own bias will ensure you carry out the right due diligence. And if you want to talk it through, let’s have a conversation.