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Any private equity deal has to be considered on its own merits

Date: 30 Apr 2015

Citywealth

What is your advice to families considering co-investing in a private equity deal? What can go wrong?

Every private office has its own agenda, aims and considerations which is what distinguishes a private office from a fund, or an institutional investor. So any private equity deal has to be considered on its own merits – which will inevitably require the investment to make sense in economic terms, but will also require co-investment terms to be fair between the parties, give proper control mechanisms and exit strategies, but also take account of the tax profile of the investing family and its vehicles.

Is this a trend that you have seen a rise in?

I don’t think that it is possible to identify one particular trend, still less any particular asset class which interests private clients ‚Äì other than real estate, which is a common factor.

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