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Private capital, patient investing, building a business

Goola Warden
Goola Warden10/10/2022 07:37 PM GMT+08  • 3 min read
Private capital, patient investing, building a business
Private equity provides better returns than public markets in the longer term. Here's why
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Private equity is often viewed as the domain of institutional investors such as pension funds, sovereign wealth funds, insurance funds and very high net worth individuals. For instance, the Liechtenstein Princely family, through their private bank LGT Bank, invests in private equity.

Investing in private equity is for long term investors as some private equity funds are long dated with lifespans of 10 years or more. Indeed, returns from private equity depend somewhat on the vintage of the fund or investment. In recent years, Singapore retail investors have become familiar with private equity through Astrea bonds offered to them. The coupons on these bonds are backed by cash flows from private equity funds.

In addition to institutions, accredited investors, family offices and the investing public are increasingly familiar with private equity property funds. Over the past 20 years, the likes of CapitaLand, Mapletree Investments, Keppel Capital and ARA Asset Management (now part of the ESR Group) offered an array of private equity property funds.

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