Private Equity Goes Public
Top-tier private equity deals are reserved for high-net-worth individuals and institutions, but now all investors have access to PowerShares Listed Private Equity Portfolio (PSP), an exchange-traded fund that was introduced last October,
This ETF seeks to replicate an index of publicly-traded companies that have direct investments in more than 1,000 private businesses.
It's an indirect play because investors own the private equity firms rather than the underlying companies. However, it's the only real option for the average investor who wants to participate in private equity.
You should take note of the fact that this ETF has had a very short history and therefore, you ought to check its daily trading volume to be certain that should you decide to buy in, there will be a ready market for the shares when you decide to close out your position.
* * * * *
This ETF seeks to replicate an index of publicly-traded companies that have direct investments in more than 1,000 private businesses.
It's an indirect play because investors own the private equity firms rather than the underlying companies. However, it's the only real option for the average investor who wants to participate in private equity.
You should take note of the fact that this ETF has had a very short history and therefore, you ought to check its daily trading volume to be certain that should you decide to buy in, there will be a ready market for the shares when you decide to close out your position.
* * * * *
posted by Bob Moser at
7:53 PM
0 Comments:
Post a Comment
<< Home