Trending Content
| +39 | Which PE firms are on the rise? | 53 | 2h | |
| +37 | Pro tips to exercising during ASO stint | 16 | 11h | |
| +19 | Is there any point learning a European language for PE recruiting (London) | 16 | 1d | |
| +17 | How to prepare to break into PE | 7 | 14h | |
| +16 | PE Secondary Advisory vs Model Internal Audit | 5 | 10h | |
| +14 | Current European Leveraged Financing Terms Superthread | 7 | 1d | |
| +13 | Quality of PE Associates | 7 | 2d | |
| +13 | Earn-out modeling between seller and buyer | 3 | 1d | |
| +13 | Technical question - Revenue sensitivity in LBO Model | 3 | 1d | |
| +12 | Cove Hill 2024 | 1 | 4d |
Career Resources
Based on the most helpful WSO content, if you've been handed $25m from the sale of a chocolate factory and are looking to invest it in private markets with a singular strategy, diving into Private Equity (PE) could be a compelling route. Here's why:
Diversification within a Single Strategy: Private Equity allows you to invest in a range of companies across various sectors. Even though it's a single strategy, the inherent diversity within PE portfolios can help mitigate risk while aiming for high returns.
Potential for High Returns: PE investments often target companies with strong growth potential or turnaround situations, aiming to significantly increase their value over time. This aligns well with the goal of maximizing the $25m investment.
Active Management and Value Addition: Unlike passive investments, PE involves active management of the portfolio companies. This means you can leverage your background, perhaps even insights from the chocolate industry, to add value to the companies you invest in, potentially leading to higher returns.
Long-term Investment Horizon: Given the nature of PE investments, they typically have a longer time horizon. This could be suitable if you're looking to grow the $25m substantially over time, without the need for immediate liquidity.
Access to Private Markets: Investing in PE gives you access to companies that are not available through public markets, opening up a broader range of investment opportunities that might be undervalued or have untapped potential.
In summary, leveraging Private Equity as your singular strategy could offer a balanced mix of risk and reward, with the potential for significant value creation over time. It's a way to actively engage with your investments and potentially leverage any unique insights or skills you have, all while aiming for substantial growth of the initial $25m.
Sources: How would you invest $25k in the current market?, How Would You Invest $1 Million Today?, How would you invest $5m cash?
Put it all in the Nanci Pelosi Fund /s
Probably some conservative multifamily manager that buys buildings with very little leverage and just clip coupons off it tax-efficiently
To be clear I’m not arguing it’s a particularly attractive strategy but given the choice between that and like PE or PC having only to choose one I think multifamily has probably the lowest likelihood in private markets of losing all my money
Probably not the answer you are looking for. lol.
Est magni temporibus voluptatibus quae. Placeat dolorem tenetur repellat est quis sed tenetur non. Reprehenderit minima officiis alias perspiciatis molestiae officiis. Rerum quo sequi aut aperiam ipsam accusantium velit.
Quas in rerum quos quam aut. Autem dignissimos aut aperiam delectus eligendi enim. Sit sint laboriosam et eligendi id vitae et.
Delectus corrupti nemo quis voluptas voluptas qui dolorem. Nobis repellat ducimus aspernatur deserunt. Et iste cum accusantium nisi maiores possimus perferendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...