What should an investor look out for when investing in private equity?
You should first satisfy yourself with the company and those involved in the fund. One should be thoroughly abreast with the fund managers capability and track record. Checking on the funds investment policy will also give investors a good idea of the risk-taking nature of the fund, and one should ideally have a similar appetite for risk to safely invest in the fund. Gauging the sweet spot of the fund and its plans is of essence and if similar beliefs are held, then an investor will feel all the more confident before committing to the fund. Private equity funds prefer being early investors. They often put in their money in small companies and take calculated punts on the companies and their funds future. This may sometimes put off investors, especially as these funds like dealing with unlisted companies in various sectors, giving them a chance to cash in on the windfall success they hope to see. However, by this investment strategy there is always a risk element which one should be pre
