“Private equity investors need to be careful of overpaying”

Date: 29 Apr 2015


Stanhope Capital’s CIO Jonathan Bell offers a brief analysis of the new trends in co-investing in private equity market.

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

Even if you are co-investing in a deal with a reputable fund you still need to undertake your own analysis.

What can go wrong?

Although we see some attractive opportunities in direct or co-investment deals, prices have risen over the past couple of years and investors need to be careful of overpaying.

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

Interest in private equity has grown partly because other assets have performed so well over the past five years and may look expensive.

If so, what type of private equity investments are UHNW or families in business interested investing in?

In general UHNWs like to invest in the sectors they know well from their own business experience.

What kind of returns are there on the investments?

On average the private equity returns our clients have achieved have been considerably above public equity markets, but for individual deals the range of returns has been extremely wide.

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