Perspectives on Private Equity and Venture Capital

Abstract

In this article the author provides a guide on how to successfully invest in private equity and venture capital as part of a diversified portfolio. The author first discusses the illiquid nature of these asset classes and the potential to earn a liquidity premium greater than the public stock and bond markets. The author also describes the recent investment trends in private equity and venture capital and how these might impact the return profiles of these two asset classes. Last, the author discusses the desire and ability of investors to market time their commitments to private capital.