Direct investments for wealthy individuals and family offices can be challenging when competing with the experience, intellectual capital, and the deep network of relationships forged by a private equity firm.
There is not a lot of data to call upon to glean the performance of direct private investments; however, based on a large, robust study focused on institutional investors, family offices should know that the performance of this type of investing has been mixed at best.
The past couple of years have proven to be banner years for private equity and merger and acquisition activity, with no signs of slow down in 2019. With cash on hand to invest and the increase in Representation and Warranty Insurance policies, forecasters expect these trends to continue.
At the ArcView Cannabis Investment Forum, a panel of leading private fund managers and industry analysts evaluated the booming yet trepidatious cannabis capital markets and predicted the developments that will most significantly affect investors in 2019.
Private investments, particularly private equity and venture capital, have provided the strongest relative returns for decades. For families with multigenerational wealth, they may be particularly well positioned to consider allocating 40% or more of their assets to private investments.