Unique Opportunities in the Private Market
Integra Capital Advisors can help you select promising private market opportunities appropriate for your personal situation. These investments may pursue growth, income, or a combination of the two. We believe these private investment opportunities have the potential to enhance the risk-reward characteristics of your investment plan.
What is a Private Market Opportunity
Private market opportunities range from conservative income-producing investments, such as real estate or mortgages, to those that offer potentially higher returns, like equity ownership in private companies. The main difference between the public and private markets is how you are able to purchase and sell these investments.
Public markets generally offer quick access, you can choose to buy and sell on any business day. All that is needed is a brokerage account to purchase stocks, bonds, or mutual funds, and subsequently, sell them if you need your money back.
Private market opportunities are usually accessed by investing in pooled funds or partnerships and access to your money will usually be limited to one time each month or quarter or possibly longer, depending on the structure of the fund you are investing in. Some private funds don’t offer any liquidity, instead, the fund liquidates several years down the road and sends each investor their share of principal and profit.
Benefits of Private Market Opportunities
Currently, there are about 4,000 stocks traded on the various exchanges here in the United States. With all of Wall Street analysts focused on this small pool, it is harder than it used to be to uncover unique opportunities than when there were over 10,000 listed companies.
Due to increased regulation, more private companies are staying private longer, or not ever going public at all. This creates an opportunity to invest in private market opportunities such as private equity which may offer attractive returns. There are also opportunities in lending, such as commercial mortgages or business lending which are traditionally lower-risk investments with attractive returns.
Why Explore Private Market Opportunities
With more companies staying privately held and alternative lending sources becoming more popular, we believe qualified investors should look for opportunities in the private markets to diversify their portfolios.
Fortunately, the trend toward making access to these opportunities through pooled funds is growing, making it easier for investors to access equity and debt investments in the private “middle market.”
The definition of the “middle market” varies, but in general, it includes companies with annual revenues in the $25 million to $500 million range.
Learn More About Accessing Private Market Opportunities
Because there is less access to the capital you invest into private market opportunities, it is essential to know who you are investing with and that your advisor has completed adequate due diligence on the fund sponsors and managers. We have developed a specialty for this area at Integra Capital Advisors and perform initial and on-going due diligence on behalf of our clients who invest in these opportunities.
Call Integra Capital today to find out more about how we can help you invest in private market opportunities to diversify your investment plan.