As part of a thoughtfully constructed portfolio, alternative investments have the potential to provide above average returns and could even reduce your overall portfolio risk because they are less likely to move in tandem with stocks and bonds.
What is Private Equity?
In its broadest sense, private equity is an ownership interest in a company or portion of a company that is not publicly owned, quoted or traded on a stock exchange. However, from an investment perspective, private equity generally refers to equity-related finance that is designed to bring about some sort of change in a private business, such as:
- Helping to grow a new business
- Bringing about operational change
- Taking a public company private
- Financing an acquisition
Private equity encompasses a wide range of investment situations, strategies and styles that can produce vastly different outcomes in your portfolio. The specific investments you select and the manager you choose to oversee your private equity investments are of far more importance than they are for traditional equity and fixed income.
Making the Decision to Invest in Private Equity
Investing in a private equity fund of funds can offer an efficient way to achieve broader, cost-effective diversification into multiple investments in a single portfolio. Although asset allocation and diversification strategies do not ensure profits or protect losses in declining markets, it is important to seek diversification and avoid concentration of portfolio risk.
Please consult with your financial professional regarding BlackRock products and services that fit your overall asset allocation plan and risk profile. Private equity investments generally are highly illiquid and have limitations on transfer and transparency, and have complicated tax structures. Because of their complex nature and regulatory requirements, private equity investments typically require that investors meet specific qualification criteria before investing.
Why Choose BlackRock?
With $104 billion of assets under management in alternative investments,* BlackRock is a preeminent provider of diverse alternative investments solutions globally, including hedge funds, private equity, real estate, commodities, currencies, infrastructure, renewable energy and other special opportunities. Please consult with your financial professional regarding BlackRock products and services that fit your overall asset allocation plan and risk profile.
* As of September 30, 2013.
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The information on this Web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.
Utilizing alternative investments involves substantial risk and presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors.
Please consider the investment objectives, risks, charges and expenses of each fund before investing. For mutual funds and registered alternatives funds, the fund's prospectus and, if available, the summary prospectus contain this and other information about the fund. You can obtain a prospectus and, if available a summary prospectus by calling 800-882-0052 or from your financial professional. To obtain information about privately offered funds, please contact your financial professional to obtain fund offering documents. The prospectus or offering documents should be read carefully before investing.
Utilizing private equity involves significant risks along with the opportunity for substantial losses.