• Access to a wider level of deal flow;
• Professional management, by a team with a demonstrable and consistent track record;
• Fund managers often offer investors access to co-investment opportunities, so they can ‘double up’ on investments of particular interest, with the added benefit that these will have already been through professional due diligence;
• No personal involvement required, but investors will typically get regular progress reports, be able to attend AGMs, hear from portfolio company chief executives and could even have a role on the funds’ advisory panel, although this is usually reserved for larger investors;
• The social and personal satisfaction of helping grow British businesses.
Private equity has long been the preserve of the institutional investor, but a combination of fund managers making it accessible to high-net-worth and sophisticated investors, along with the attractive returns it offers, have put it firmly on the radar as an alternative asset to be considered as part of an investor’s portfolio.
Michael White is a director at YFM Equity Partners
