Private Capital Investment Strategies

The range of investment strategies in private capital includes those that promote investing in non-publicly traded companies, as well as taking public companies private. Strategies available to investors in private capital offer a variety of options: buyout firms, mezzanine capital, venture capital, buy-ins, and distressed investing.

Structural Characteristics and Program Returns

As with all asset classes, structural characteristics of private equity are unique to the size and type of the investment. We highlight common qualities of private capital in an exploration of historical results of investment programs.

Selecting Investments

Discussing strategies and ideas can be an “arm-chair” exercise, but executing and selecting investments is a horse-of-a-different color. We detail the measures to take when selecting an investment, as well as the critical provisions to consider in an investment agreement.

Combining, Sizing, and Rebalancing Positions

When building a portfolio of private capital investments, investors should follow three fundamental principles of best practices: collect top quality partnerships, diversify across managers and vintage years, and develop a liquidity plan.