Discover the Potential of Private Equity Investing

Embrace a different kind of investment with Vennre, your gate to the dynamic world of private equity investing. Whether you seek diversified investment strategies or direct access to private equity deals, we provide the tools to harness this market's potential. With investment minimums starting at $25,000, your journey into private equity investing starts here.

What is Private Equity Investment?

Private equity investments, often structured as limited partnerships, provide long-term capital to mature companies seeking to expand, restructure, or enter new markets. Investors benefit from the substantial returns potentially offered by high-growth companies and the strategic initiatives driven by experienced management teams. Given the intrinsic long-term horizon and active management, private equity investments can outpace public market returns, offering attractive risk-adjusted performance for investors.

Why Invest in Private Equity?

Historically, private equity has been renowned for delivering an illiquidity premium against public equities. This implies an excess return for capital tied up over an extended period, typically ranging from 7-12 years. In aggregate, private equity has consistently surpassed its public market equivalents like the S&P 500 and MSCI World Indexes over various time intervals. Although the level of excess returns fluctuates with market cycles, the overall performance remains consistently impressive.

Moreover, the trend of private companies to remain private longer due to the ease of capital access only adds to the private equity opportunity pool, as opposed to the diminishing public market potential reservoir.

Private equity managers benefit from a three to six-year investment horizon, allowing them to build substantial value in portfolio companies. Free from quarterly shareholder pressure, they can keep strategic plans, product developments, and acquisitions confidential, enabling transformative strategies. Historical data shows this approach consistently yields attractive risk-adjusted returns, outperforming traditional public market investments.

Sources: MSCI Indices, SPDJI, Burgiss, Macrobond. Analysis by Franklin Templeton Institute. The indexes are total returns in US dollar terms. All returns are net of fees, valued on a quarterly basis.

Private Equity as a Tool for Diversification

Incorporating private equity into your investment portfolio is a robust tool for diversification. By investing in private equity, you access opportunities and asset classes not typically available in public markets. This diversification can mitigate risks associated with market volatility, as private equity investments often have a lower correlation with public equities. Additionally, these investments can perform well during economic downturns when traditional stock and bond markets may falter. By spreading your investments across various private companies and sectors, you enhance the potential for steady, long-term growth while balancing overall portfolio risk.

Historically, large institutions and family offices have dedicated substantial portions of their portfolios to private markets, while high-net-worth (HNW) investors faced limited opportunities to engage in private equity, private credit, and real assets. Sovereign wealth funds, endowments, and foundations typically allocate the highest percentages to private equity, often due to their extended investment time-horizons. Larger institutions generally commit more to private markets; for example, the Yale Endowment is renowned for allocating 70% to 80% of its portfolio to alternative investments, with approximately 50% specifically directed towards private markets.

Sources: Preqin, CAIA Association (2023).

Benefits of Investing in Private Equity

Investing in private equity offers numerous advantages, especially for high-net-worth individuals. When adding private equity to your portfolio, you can expect:

  • Outperformance compared to public market indices
  • Reduced exposure to market volatility
  • Potential for significant long-term capital appreciation
  • Opportunities in various industry sectors and stages of company growth
  • Tailored investment strategies

How is Investing in Private Equity on Vennre Different?

Thorough Due Diligence

Each private equity opportunity is meticulously vetted through a multi-phase due diligence process to assess the potential for growth and identify inherent risks. This rigorous evaluation ensures the foundation for sound investment decisions.

Proven Track Record

Vennre has raised over $15mm across 10 real estate, private equity and venture capital offerings, with more than $40K cumulative in principal repaid to investors thus far (as of 13.8.2024).

Expert Management Teams

We collaborate with top-tier management teams, average over three decades of experience, excelling in innovative strategies and sector-specific expertise, ensuring robust management and operational efficiency.

Exclusive Access

Vennre’s strong network grants investors access to elite private equity opportunities previously reserved for institutional entities, enabling investments in high-potential companies across various growth stages.

Competitive Entry Points and Clear Fees

Private equity investment minimums start from $25,000 (or equivalent in £/€/CHF based on the deal's origin). Vennre offers a transparent fee structure that is competitive, mitigating the dilution of investor returns through unnecessary fees.

faqs

Find answers to your most common questions here.

What is the minimum investment amount for private equity opportunities on Vennre?

Investment minimums for private equity opportunities on Vennre start at $25,000 (or the equivalent in £/€/CHF depending on the deal's origin).

What is the typical holding period for private equity investments?

Private equity investments often require a longer commitment, typically ranging from 5-12 years.

Are there tax benefits to investing in private equity through Vennre?

Yes, Vennre can provide various tax advantageous structures for private equity investments leading to capital gains tax deferral and lower tax rates on long-term gains.

How does Vennre vet its private equity opportunities?

Each opportunity undergoes a rigorous multi-phase due diligence process designed to evaluate growth potential and identify risks, ensuring resilient investment structures.

Why choose Vennre over other private equity platforms?

Vennre provides competitive entry points, transparent fees, and unparalleled access to exclusive private equity opportunities through our extensive network and partnerships with experienced managers.

What is the difference between private equity and venture capital?

Private equity (PE) involves investing in established companies that are not publicly traded, with the aim of improving their profitability and then selling them at a profit. Venture capital (VC), on the other hand, focuses on investing in early-stage startups with high growth potential. PE investments typically involve larger, more mature companies, while VC investments are generally riskier and target smaller, newer businesses.

What are the potential returns on private equity investments?

Private equity investments can offer substantial returns, often outperforming public markets. The potential returns vary based on the specific PE strategy (e.g., buyouts, growth capital, distressed assets), the industry, and market conditions. Historically, successful private equity funds have delivered annualised returns of 10-15% or more, but individual results can vary.

What are the risks associated with private equity investing?

Private equity investments come with several risks, including illiquidity, long investment horizons, and the potential for capital loss. Other risks include operational risks in the portfolio companies, market risks, and management risks. Thorough due diligence and diversification can help mitigate these risks.

Create your wealth now

Embark on your private equity investment journey with Vennre today and unlock the potential of private market investing!