As you might have noticed already, we have technically entered a recession.
It may give you intense anxiety, or excitement to search for alphas that are now undervalued.
In order to diversify my risk and identify new opportunities, besides exchange-traded funds (ETFs) and cryptocurrencies, I have been exploring other alternative investments, and one that interests me is…
Private Equity.
According to the latest midyear private equity report by Bain Consulting, PE investors earn superior internal rates of return in years following recessions.
Interesting.
I decided to take some time to see if it suits me and how I could do that with minimal risk. (Actually, I mean, with minimal investment.)
And I want to share my findings with you.
So, let me quickly walk you through 3 reasons for investing in private equity and if you are game, how you can get started with (drum roll please…) less than $2.
First, what’s in it for us?
1. Portfolio diversification
The first reason is simple: private equity is an alternative investment, meaning it can diversify your investments beyond public equities such as stocks and the like.
And of course, if you invest in multiple private companies, you further diversify your risk.
2. Exposure to hidden gems
Private equity also exposes you to smaller, less crowded companies with great upside potential.
