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Article: Privates on parade: potential investors should be ready to drill a selection of managers before choosing a private equity fund, says Standard Life Investments (private equity) chief executive. (Investment Brief).(Brief Article)
- Article from:
- Money Marketing
- Article date:
- June 13, 2002
- Author:
CopyrightCOPYRIGHT 2002 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Private equity can evoke dreams of finding the next Intel or Microsoft or images of fat cat bankers dressed in Armani suits, smoking expensive cigars and contemplating their next big deal.
But private equity can make a useful contribution to any investment portfolio. Studies have shown that private equity returns do not correlate closely with returns from other asset classes, such. as bonds and public equities, so having an allocation in private equity can help smooth out the returns of a balanced portfolio.
Private equity relates to investment strategies involving the equity in companies not listed on a stock exchange. Finance is provided by firms which ...