Private Investment Firms
Diversify your portfolio by investing in private firms.
They offer unique alternatives to public companies.
Investing in Private Firms
The main aim of any investor, whether high net worth or the average one, are the same, that is:
- Preserve capital
- Generate income
- Growth for future income
- Minimize taxes
The best way to ensure that is to have a diverse portfolio with different types of securities. While some of your investments may be losing value, others will help cushion your lost. One of the best portfolio mix is to have public investments, private investments, and alternative investments.
Retail investors are reluctant to invest in private firms due to:
Unfamiliarity with private options by both clients and advisors
Myths and preconceived notions about private investments
Lack of access to private investments at the retail level
Securities industry bias to only sell public market securities.
The best way to ensure that is to have a diverse portfolio with different types of securities
Attributes of Private and Public Companies
Attributes of business owners that make investing in their companies profitable are:
- Ownership/controlling position
- Non-committee based decisions/nimble
- Investment not marked to market, value is determined and assessed at specific points in time and subject to specific events.
- No quarterly analyst pressure
- Cash flow generative
On the contrary, some of the attributes of public securities ownership are:
- Dispersed ownership
- Less Entrepreneurial
- Committee based decisions/less nimble
- Less focused
- Investment marked to market – “green day vs. red day”
- Quarterly analyst pressure – short term thinking
- Market Value driven by a combination of publicly available information, greed and fear
Invest in private investment firms as well as in public companies
Why Trust Us With Your Money?
- We have the expertise and experience
- Our knowledgeable management