Private Equity – Caravel Partners – Financial Advisors Zambia | Zambia Financial Advisors

Private Equity & Fixed Interest

Private equity investment is the placement of money directly into companies outside the usual publicly-traded stock market. There are various ways to invest: we offer investment opportunities into private UK firms (or other companies) raising money via fixed interest bonds.
We also have pure private equity deals available, either via a private equity fund or as a direct investment.

Investing in the bonds of private companies or private equity has the following benefits:

It can help to strengthen portfolios by providing greater diversification. .

With so many variables in play, and economic forecasts so uncertain, building into your portfolio an element with a fixed return may reduce overall risk

Private equity returns can outperform other markets because of the illiquidity premium found with this market

Private equity provides access to a broader universe of companies than those listed on public exchanges, including many early stage and growth-orientated companies.

Private corporate bonds have low entry levels: often around £20,000.

Private corporate bonds can pay income quarterly, half-yearly or annually. They can thus play a role in your income generation strategy.

Primarily though, in an era of low or even negative interest rates, investors are hard-pressed to find yield. The bank gives you nothing; bond rates are depressed, many income funds have seen their returns crushed. A fixed interest coupon of 6% or more is attractive in a low-yield environment.