What is Private Equity?
Private equity shares are shares of a company that can consist of equity or debt in a company that hasn’t gone public or listed on the stock exchanges.
What is the advantage of owning Private Equity over other asset classes?
Private equity is an alternative investment used by foundations, endowments and other institutions, along with high net worth individuals, as a part of their asset allocation. Historically, private equity has provided a much higher return than traditional public investments such as stocks and bonds.
Why Use Market Central to buy Private Equity?
If you are an accredited investor and want to add private equity to your portfolio, Using Market Central Private Assets is a way to access the markets without being covered by a large institution. Our minimums are modest and allow you to create a basket of companies that you are interested in.
Is Private Equity safe?
Before making any investment decision, you should always consult with your investment adviser to ensure that any investment is suitable for your portfolio, stage of life, and level of risk you should be taking. Private equity is an investment in a private company and carries additional risks to buying a publicly traded company. There are many risks which are typically outlined with each investment, however the two main additional risks with private equity are: (1) liquidity risk – the ability to sell your shares will be limited and (2) transparency risk – private companies have less financial and operating reporting transparency.
What is an accredited Investor?
To qualify as accredited, you must meet one of the following criteria:
- Alone or together with a spouse, you own financial assets worth more than $1 million before taxes but net of related liabilities
- Your net income before taxes exceeded $200,000 in both of the last two years and you expect to maintain at least the same level of income this year;
- Your net income before taxes, combined with your spouse, exceeded $300,000 in both of the last two years and you expect to maintain at least the same level of income this year
There are other rules and regulations, so please contact us if you have any questions.