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Maximizing Returns: A Deep Dive into KPIs for Private Equity Investments

Diversifying Your Portfolio: Strategies for Investing in Private Equity

Diversifying Your Portfolio: Strategies for Investing in Private Equity

Unlocking Potential: How Private Equity Investments Can Diversify Your Portfolio

Strategies for Success: Diversifying Your Portfolio with Private Equity Investments

Maximizing Returns: A Deep Dive into the Lifecycle of Private Equity Investments

Public equity investors have poisoned the well we drink from — The antidote is the reference shareholder — Opportunity exists to create a new paradigm in public equity investing. In Europe there exists the concept of a "reference shareholder." A reference shareholder holds a large stake in a business and serves as the de facto speaker for the entire shareholder base. Importantly, reference shareholders do not sell their shares based simply on price fluctuations. This mindset contrasts sharply with the short-term nature of most public equity investors. Typical mutual fund owns stocks for only 1-2 years. With this turnover, management teams know that mutual fund investors are looking to capitalize on share price fluctuations as opposed to the long-term, intrinsic value growth of their business. ☠️ The public equity investment industry is poisoning its own well by demanding short-term investment results. Shareholders ask for CEOs to be compensated based on TSR, or share price fluctuations. Then CEOs focus on the share price. Then reinvestment and innovation go by the wayside. The result is poor long-term returns for equity investors, despite excellent short-term returns for the CEOs earning stock based compensation and mutual fund managers charging large fees. 🌲 The solution to short-termism is the reference shareholder. A shareholder that focuses five or ten years into the future, knowing that share prices will, at some point, follow the value created by the business. Reference Equity seeks to be the reference shareholder for a handful of outstanding businesses operated with a truly long-term mindset. We believe that by bringing this disciplined, long-term focus, we can support value creation at the companies we own. By creating a new paradigm for public equity investing, we ourselves can be the antidote to the current public market malaise. More reference shareholders are needed to drive this change.

Diversifying Your Portfolio: Investing Strategies in Private Equity

Considering an investment in private equity? While it offers potential advantages, it’s important to also consider the associated risks, such as limited liquidity and the complexity of evaluating private companies.  Read our latest to learn more about key factors to consider before adding it to your portfolio. #equity

Private equity refers to investment strategies that primarily pursue ownership of equity positions in privately held companies. These positions are typically acquired through direct negotiations and require more laborious due diligence and execution process compared to buying shares of public companies. Investors who qualify to participate in the private markets should strongly consider including them as an essential part of a well-constructed portfolio strategy. Read the blog below to learn more. Read our disclosures here: https://bit.ly/3yl71pk