The Strategic
Business Consulting Process
Institutional investors worldwide
consider private equity an increasingly important
component of their overall asset allocation. Pension
plan sponsors, endowments, foundations and family offices have participated in private equity investing
over decades for many reasons, the most important of
which include: a diversified portfolio of private equity
can generate highly attractive returns compared to a
portfolio of traditional marketable securities; private
equity provides a source of diversification that can
reduce overall portfolio risk; private equity focuses on
long-term investments that are relatively insulated from
short-term valuation fluctuations associated with the
public securities markets; and investors can participate
in a vibrant market of privately - held companies,
certain types of which are not generally found in public
securities markets.
At the same time, investors should be aware of the
greater dispersion of historical returns from
investments in private equity partnerships as compared
to portfolios of traditional securities—and need to have
a program that effectively manages these risks in order
to develop a portfolio where returns can exceed those
available in the public markets.
Structuring and monitoring effective private equity
portfolios requires a wealth of experience, discipline
and specialized skills. CVM-Global is
well-positioned to provide investors with the
opportunity to invest in private equity.
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