Why Explore Private Market Opportunities?
Diversification may mean more than just investing in publicly traded stocks, bonds and real estate investment trusts. Onerous regulation of public companies and banks have caused the number of publicly traded companies to shrink and made financing from traditional lending sources difficult.
With more companies staying private held and alternative lending sources becoming more popular, we believe qualified investors should look for opportunities in the private markets. 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 includes companies with annual revenues in the $50 million to $500 million range. Opportunities also exist for lending, development and ownership of attractive opportunities in the real estate sector as well as small business lending.
Investors generally must accept less access to their capital when investing in private market opportunities. Just like owning real estate or a business directly, the sale of assets usually takes time. You should only dedicate the appropriate portion of your portfolio to private market investments that you are confident you will not need to support your lifestyle for several years potentially. Note that often private market opportunities do produce a current income stream so while getting your principal investment back may take time, you will have access to an income stream, if the investment is income producing.
Because there is less access to capital invested, it is important 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 in this area here at Integra Capital Advisors and perform initial and on-going due diligence on behalf of our clients who invest in these opportunities.
Call us today at 941-778-1900 to learn more about accessing private market opportunities or email us at: email@example.com.