The private-equity market is known to outperform the stock market on a long-term basis.
Research conducted by Hamilton Lane — an investment firm overseeing $469 billion — further shows that, unlike in stocks, returns in one corner of the private-equity market hold up even in the most volatile market environments.
The firm’s chief client officer explained to Business Insider how investors can cushion their portfolios, and offered some of his top recommendations right now.
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Volatility is a fact of life for every investor.
But for those who dread the unique stings of the stock market, consider the cushioning that private equity can provide.
To be sure, private markets are vastly more illiquid than equities and can contractually require long-term commitment. That’s very unlike the stock market, where profits can be taken in an instant so long as there’s a willing buyer. Also, certain investments — like those in venture capital — all but guarantee early losses as companies get their feet off the ground.
But during times when the stock market is under intense pressure, private-market returns have stood their ground, according to research conducted by Hamilton Lane, …read more
Source:: Businessinsider – Finance