When it comes to Private Equity investments, many people think of Venture Capital (VC). But even though Venture Capital can bring the highest gains, the risks for losses are the highest, too.
There are several other possibilities to get involved into Private Equity investment.
Especially more or less the opposite to VC, on the other end of the spectrum, are the so-called Buy-Out investments, which are basically much more safe due to the reason of investment. Those Buy-Out investments put their money into stable, already existing companies which want to expand their businesses. Maybe for some people that's not so much fun, but that's also not so much risk.
On the picture you see the different risk profiles of Private Equity investments. (Please click to enlarge.)
It is not hard to guess, which investments we are procuring for our clients: Funds-of-funds in Buy-Out settings.
This reduces the average gains to a mere 8 - 15% per year - compared to a possible several hundreds in a VC setting - but this money is safe.
The funds company we are working with builds their funds-of-funds of several global funds, each of them holding investments in several companies.
Our favorite Private Equity funds run for around 8 years only, which gives more manageability and more flexibility, compared to other closed funds which have a much longer duration.
Important note: At the moment, due to legal reasons the Private Equity investments we are offering can only be signed on German ground - i.e. either in Germany or on the property of a German embassy around the world.
We are sorry for this inconvenience.