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Why Private Equity

by Todd McLay

December 8, 2022

From the investment team at Precedence Capital - Harbourfront Wealth Management.

For over 20 years, Private Equity investments have outperformed their counterparts in the public market. This is largely due to their ability to better weather turbulent markets and economic downturns. In fact, recessionary environments have acted as catalysts for growth in the private equity landscape due in part to opportunities created. Today, the COVID-19 pandemic has created a capital vacuum providing investment opportunity in this space that hasn’t been seen in over a decade.

The superior performance of private equity investments can also be attributed to an increase in companies choosing to wait longer before going public, ultimately coming to market fully valued. High growth is now occurring in the private stage, offering early investors an exit at elevated public prices. Whether private businesses are grappling with the demands of their growing enterprise or looking to solidify their legacy for the future, the need for investment capital is abundant. As a result, Private Equity has grown to become the single largest Alternative Asset Class globally.

With Private Equity yielding superior investment returns, often with significantly reduced volatility, it is no wonder that institutional investors have been continuously increasing their exposure to this asset class in their portfolios.

The asset classes/companies featured in this article are for illustration purpose only, this should not be viewed as a solicitation of buy or sell. Always talk to a professional before investing to know if the product is right for you. Past performance does not necessarily predict future results, each asset class has its own risks.

Harbourfront Wealth Management Inc. has no liability to readers of this message, and its use is entirely at the risk of the reader. Harbourfront Wealth Management Inc. does not assume any liability for the use or misuse of information contained in this message, or for any errors that may occur in this message. I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.

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