We are pleased to announce the publication of a new white paper guide series: Private Equity: Why, What, How? This three-part guide provides investors with the fundamental information they need to understand what private equity is, how the opportunity set is categorized, the unique risks and benefits for the asset class, and how to build a successful private equity strategy. With Arnerich Massena’s specialized expertise in and long history of private equity investing, the firm offers their knowledge and insights to investors wishing to better understand the opportunities in private markets.
“Investing in private equity requires patience, commitment, and expertise,” says CEO and co-CIO Tony Arnerich, contributor to the series. “But this asset class has so much to offer to investors who are able to tap into the incredible opportunities in this space. We want to help provide some of the fundamentals so that investors can become more familiar and comfortable with private markets.”
Co-CIO and contributor Bryan Shipley, CFA, CAIA, adds, “There are only about half as many public stocks available on the market as there were just 30 years ago. The public equity opportunity set has been rapidly diminishing as companies find it more advantageous to stay private longer. In this environment, capturing the early years of active, rapid growth for many companies requires investing in private markets. Private equity offers access to opportunities that are simply unavailable in public markets, and we are focused on connecting investors with those opportunities.”
Gaining familiarity with the asset class is the first step in developing the knowledge and comfort level required of a private equity investor. These three short papers together provide a primer for interested investors. In Part 1, Why, readers will better understand the opportunity set and performance potential of private equity. Part 2, What, discusses what makes private equity distinctive, the lifecycle of a private company and how private equity companies are categorized, how financial gains are realized, and what unique risks accompany private equity investing. Part 3, How, delves into the specifics of building a private equity strategy, covering different avenues for private equity investing, commitment strategy, and investment selection.
Read or download the paper here.