Wanted to get some advice from anyone that has co-invested in their PEG's funds over the years. Would be great to hear from folks that invested before the recession especially.
This is my first time making an illiquid investment and want to get a reality check from people that have been in the same seat before me. Really trying to nail down how to think about the allocation compared to my other investments.
Current state of my finances:
25 y/o; $100K+ that is in S&P 500 ETFs (split 50-50 between 401k and brokerage). $10K+ liquid to cover 3-4 months of expenses. $10K+ of cash equivalents as a hedge against current asset prices.
Points of concern I have:
i) is this too many eggs in one basket? If Fund V blows up, I'm out my investment, 50% of my annual comp (bonus) and a job (salary). Not sure how many PE funds closed up during the last recession, but I would think that this time we'll see an equal or greater reduction in headcount.
ii) I'm confident in the company, but at the end of the day I am locking up money for a while when we are at (what some would call the end) of a ~10 year bull market in PE. Asset prices are relatively high right now. Would it be wiser to buy $1k of ETFs every 2 weeks than dumping $25k into one private company?
How should I think about this? Is there a reasonable "range" to keep in mind that I should move in depending on my confidence level in an investment?