Private Equity Industry

The private equity industry has evolved into a more mature, open architecture. This evolution is similar to the institutional real estate investment market with the creation of the REIT (Real Estate Investment Trust) several decades ago. Traditionally, private equity funds or partnerships were only available to the largest institutional investors. These funds typically have a fixed life of 8-12 years. Now, individual investors and other institutions are gaining access as leading private equity firms issue public equity for evergreen or perpetual funding vehicles.

Private equity firms benefit with access to permanent capital and the ability to reinvest when desirable. Also, investment horizons can be driven by total return as opposed to a predetermined timeframe as is common with typical private equity funds. Investors in public equity benefit from access to private equity, greater transparency, liquidity, diversification, and reasonable fees .