Private Equity
Private Equity refers to investments in privately held companies or buyouts of public companies that result in their delisting from stock exchanges. These investments are typically made through private equity funds, direct investments, or co-investments. For family offices, private equity is a key component of alternative investments, offering the potential for higher returns compared to public markets, albeit with higher risk, illiquidity, and longer investment horizons. It allows family offices to diversify portfolios, access unique growth opportunities, and align investments with their long-term wealth preservation and growth objectives. Active involvement in private equity can also provide strategic influence over the companies in which they invest.