Globally, the vast majority of companies (88%) are privately owned - i.e. not publicly listed¹. Making these companies investable opens up a significant new investment universe that is likely to grow further in the coming years.
Demand for Private Equity is increasing accordingly, as the asset class offers additional investment opportunities and high return potential for long-term investors. Private Equity is considered an indispensable asset class by many professional investors such as family offices.
According to analyses by the BlackRock Investment Institute, the addition of Private Markets investments, including Private Equity, can improve the risk-return profile of an existing portfolio.
The key advantages of Private Equity are:
Diversification: Private Equity provides direct access to companies and to an asset class that is not available in traditional markets. An investment can therefore broaden the investment universe and contribute to the risk diversification of an existing equity, fixed income and ETF portfolio.
Capital appreciation: To counteract persistent macroeconomic factors such as changing interest rates, inflation and geopolitical risks, ELTIFs focus on long-term capital appreciation. This can be achieved through careful investment analysis combined with a disciplined and scalable active investment approach, often acquired through years of experience.