How to Diversify Your Portfolio with Private Equity

Unquoted investments can difficult to access for retail investors and carry liquidity risk. But private equity trusts package up these high growth investment opportunities

David Brenchley 9 November, 2017 | 9:42AM

Facebook and Airbnb are two examples of private equity and venture capital success stories

Looking for investment growth? Investing in smaller companies has historically been a successful way for investors to secure large capital gains. Smaller firms tend to have much more room for growth than larger firms. The Alternative Investment Market (AIM), launched in 1995, gave retail investors the chance to do this directly.

But although AIM listed stocks are small-fry compared to the FTSE 100 companies, they tend to be established firms rather than start-ups. Investors looking to profit from the next big thing, backing an entrepreneur or niche industry may want to consider unquoted companies. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Facebook Inc A174.28 USD3.23
HarbourVest Global Priv Equity Ord1,318.00 GBX-1.64
Pantheon International Ord PLC1,890.00 GBX1.50
Scottish Mortgage Ord599.50 GBX0.42
Woodford Patient Capital Trust24.00 GBX-4.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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