Consider a Different Way to Diversify Your Portfolio
Private Equity typically invests globally in private entities with a value-add approach, seeking to acquire undervalued/underperforming entities or ones with significant growth potential with the objective of reselling at a higher price in the future. Underlying asset classes include buyouts, venture capital and mezzanine debt.
The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company.
Present areas of interest include Financial Services, Real Estate, & Multimedia.
Real Estate refers to negotiated private investments in real estate assets with the objective of generating current income and/or reselling at a higher value in the future.
Determine If These Investments Fit Your Needs
Many choose private equity because their returns have a low correlation with those of traditional asset classes. In addition to an attractive risk adjusted return potential, private equity allows you to diversify your portfolio by investment strategy, portfolio manager, industry sector, geography and liquidity needs.
Are You Qualified to Invest in Private Equity?
If you’re looking to add private equity to your holdings, you should be a sophisticated investor and be able to understand the complex investment strategies sometimes employed, and tolerate the risks and liquidity constraints of alternative asset classes. Therefore, please review carefully the risk considerations described below.
To find out if you’re qualified to invest in alternative investments, please talk to your Financial Advisor or Private Wealth Advisor as eligibility requirements vary greatly when compared to traditional investments.
1 Alternative Investments often engage in speculative investment techniques involving a high degree of risk and are only suitable for long-term, qualified investors.
IMPORTANT INFORMATION FOR YOU TO CONSIDER
The sole purpose of the preceding is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits, does not constitute an offering, and is meant only to provide a broad overview for discussion purposes. All information provided here is subject to change without notice. If and when an investment opportunity is structured, all investors must obtain and carefully read the related fund’s offering memorandum or prospectus, which will contain the information needed to evaluate the potential investment and provide important disclosures regarding risks, fees and expenses. No offer of any interest in any product will be made in any jurisdiction in which the offer, solicitation or sale is not authorized, or to any person to whom it is unlawful to make such offer, solicitation or sale.
Investing in alternative investments is speculative, not suitable for all clients, and intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investment, which can include:
- loss of all or a substantial portion of the investment due to leveraging, short-selling or other speculative investment practices;
- lack of liquidity in that there may be no secondary market for the fund and none expected to develop;
- volatility of returns;
- restrictions on transferring interests in a fund;
- potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized;
- absence of information regarding valuations and pricing;
- delays in tax reporting;
- less regulation and higher fees than mutual funds;
- funds of hedge funds often have a higher fee structure than single manager funds as a result of the additional layers of fees;
- risks associated with the operations, personnel, and processes of the manager.
Past performance is no guarantee of future results. In the ordinary course of its business, TRG engages partners in a broad spectrum of activities including, among others, financial advisory services, investment banking, asset management activities, sponsoring and managing private investment funds. In engaging in these activities, the interests of TRG may conflict with the interests of clients.
Investments mentioned above may not be suitable for all investors. Before making any investment, each investor should carefully consider the risks associated with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives. In order to be eligible to invest in an alternative investment fund, investors must be an Accredited Investor, as defined by Rule 501 of Regulation D of the 1933 Act. For certain funds, investors must also be a Qualified Client, as defined by Rule 205-3 of the Investment Advisers Act of 1940, as amended, a Qualified Eligible person, as defined in Rule 4.7 of the general regulations under the Commodity Exchange Act, and/or a Qualified Purchaser, as defined by Section 2(a)(51) of the 1940 Act. Morgan Stanley may impose an eligibility standard for a particular alternative investment fund that may be higher than those required to meet either the Accredited Investor, Qualified Client, Qualified Eligible Person and/or Qualified Purchaser standards.
Diversification does not assure a profit or protect against loss in declining markets.
Interests (1) are not FDIC-insured, (2) are not deposits or other obligations of a bank, (3) are not guaranteed by a bank, and (4) involve investment risks, including possible loss of principal. TRG is not a bank.