Is there a way for someone like me to get involved in private equity companies?

I do see some firms in hardship, particularly in light of the FED’s rate cuts and the rising unemployment rate.

These companies may not be profitable, but their assets are worth something.

Is it possible for me to expose myself to these predators through an ETF or fund? :joy:

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Private equity firms like KKR, Blackstone (BX), Apollo (APO), and Ares (ARES) are publicly traded, along with a few others.

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Thank you, that was just what I needed.

Do you believe that the state of the economy as a whole affects these?

As they stand to gain or ought to gain from distressed assets.

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When evaluating private equity firms as investments, it is important to understand that they don’t profit by being “vultures.” While holding such a view might be a valid political stance, it can be a risky investment perspective.

Private equity companies primarily earn their profits by increasing the value of their assets. They structure their deals so that even a small rise in asset value can lead to significant returns. If you expect the economy to decline, private equity investments might underperform compared to the broader market. Conversely, if the economy improves, private equity investments might outperform. The performance of the private equity firms themselves is secondary to this, and whether this holds true in practice is something I haven’t researched. But if you are betting on market fundamentals, this is a useful framework to consider. :100:

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Work at the company and buy pre-IPO shares on the secondary market.

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Maybe they should hire a janitor? :joy:

In all seriousness, these guys might be killing it soon.

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Private equity investments are typically made through limited partnerships. To participate, you need to be an accredited investor which means having significant financial resources, be prepared for a more complex tax situation including the K-1 tax form, and be willing to commit to at least a 10-year investment with no option for early withdrawal. Additionally, there is often a lack of transparency about what you’re investing in, and you will generally need a financial advisor to help you get involved.