What is Private Equity?

Last week, I wrote about the process of wealth creation; this week, I will explain what private equity is and why you should invest in it.

Private equity is a form of investment or capital outside the public stock market in which investors can gain an ownership stake in private companies including direct access to real estate. Private equity allows accredited investors and institutional investment firms to diversify their portfolios and take on more risk in exchange for a potential higher return compared to traditional public and corporate bonds. Unlike public securities which are tradable every business day, private equity is not as liquid, a liquidity discount is often applied to their valuation and consequently, it translates into higher return potential, for the same qualitative and quantitative characteristics as a public business.  

 Let's take a look at an example of a private equity investment. Many Canadians love to invest in real estate, and we have seen our real estate market grow in the last twenty's years. Many of my clients bought a condo or duplex to rent out and have a rental income. Now, imagine instead of owning one condo or a duplex, you can become a part-owner of multiple condos or buildings instead?

 Also, private equity in real estate can help diversify your portfolio. The steady income from investing in real estate can help offset the low rate you receive from traditional bonds. It can diversify your portfolio by investing in private equity that owns real estate in other provinces or countries or own commercial buildings in these provinces and countries.

Direct ownership in businesses is another example of private equity. By being an owner, you will have a say in everything the company does.

I am proud to say we are taking advantage of having access to a private equity investment through Mandeville Private Client Inc. I will continue to look for a new opportunity to grow your portfolio and wealth. For my clients.

One of the main reasons I joined Mandeville Private Client Inc. is to have access to private equity investments for all my clients. I am proud to say we are one of Canada's few firms that offer access to private equity investments to all my clients, not only for our ultra-wealthy clients.

If you would like to learn how investing in private equity will improve your overall portfolio and be part of helping you to create wealth, feel free to contact me.

Have a wonderful weekend!

 Hussain Ahmad

Investment Advisor — Mandeville Private Client Inc. Financial Security Advisor — Zagari+Simpson 

Commissions, trailing commissions, management fees and expenses may be associated with investments. Products are not guaranteed, their values change frequently and past performance may not be repeated. The Private and Alternative Products being discussed are not publicly offered. They are only available under offering memorandum and other exemptions to investors who meet certain eligibility or minimum purchase requirements such as “accredited investors”. Any reference to a company is for illustrative purposes only; it is not a recommendation to buy or sell. Information herein pertaining to the Private and Alternative Products is solely for the purpose of providing information and is not to be construed as a public offering in any jurisdiction of Canada. The offering of Units of the Private and Alternative Products is made pursuant to an Offering Memorandum and the information contained herein is a summary only and is qualified by the more detailed information in the Offering Memorandum. Please read the offering documents before investing.