Private Equity
Private equity firms make investments in companies that are not publicly traded and attempt to unlock value from a variety of inefficiencies that exist in the private marketplace.
Benefits:
- Exploitable inefficiencies that are not present in the public marketplace because of the lack of marketability and Wall Street coverage on companies in the private sector—so the potential for outsized returns is high
- Longer term investments, tend to make gains tax efficient
Considerations:
- Access limited to Accredited Investors or Qualified Purchasers*
- Capital drawn in the early years and distributions made in the later years
- Illiquidity: The time horizon for these investments is generally 10+ years, and early withdrawal is virtually impossible without steep penalties
- Periodic valuations on these funds since they are privately held assets
- High fees
- Late tax filings expected for taxable investors
Atlantic Trust has broad expertise with private equity, as we have been working with ultra-high-net-worth families and building industry relationships in this market for over 10 years. Our access to industry-leading venture capital, leveraged buyout, energy and other private equity managers provides broad diversification and entry for our clients.
*Accredited Investors have investable assets of more than $1.5 million; Qualified Purchasers have investable assets of more than $5 million
The Chartered Financial Analysts® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis. The Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the U.S.
