Navigating the financial world can be challenging, with decisions having a significant impact on investments. Professionals like CEOs and private wealth advisors emphasize the potential of private equity to contribute to financial growth. This article provides strategic insights on up-scaling operations and leveraging private equity for innovation, featuring four expert perspectives.
- Upscale Operations with Strategic Partners
- Seek Opportunities with Asymmetric Risk-Reward
- Diversify Beyond Traditional Investments
- Leverage Private Equity for Innovation
Upscale Operations with Strategic Partners
Private equity really gave Edumentors that needed financial push to upscale the operations. We were able to hire more people, invest more in technology, open up markets, and by six months’ time, we grew our sign-up students by 25%. To others who are considering private equity, I would say pick those who give you not only capital but also strategic expertise. At Edumentors, we have not only been financially rewarded but also provided pivotal guidance on growth strategies. With the right partners, success would multiply.
Tornike Asatiani
CEO, Edumentors
Seek Opportunities with Asymmetric Risk-Reward
From 1986 to 2022, as a whole, private equity outperformed public markets by close to six percentage points. The math on this, when starting with one million dollars, is that you would have ~26.3 million dollars if you were invested in the S&P 500 during that time. In private equity: ~$139,000,000. It is important to start with this data point for people to really understand the potential differences that outperformance can create when given enough time to compound.
For me and my clients, we are opportunistically looking for opportunities with outsized potential to return capital through growth and distributions, with the opportunity to get in early at attractive valuations, when the asymmetric risk-reward profile is simply too good to ignore.
In other words—and this is an important point—you do not invest in just any private/alternative opportunity. Painstaking hours of due diligence and research are required, and you can expect to turn down a thousand opportunities before you identify a diamond in the rough. As such, working with a professional that has a proven track record of success is always advisable.
Geoff Sokol
Private Wealth Advisor, Grow Think Investment Management
Diversify Beyond Traditional Investments
Investing in private equity brought significant financial growth by allowing me to diversify beyond traditional investments. A few years ago, I backed a tech-driven logistics firm, which aligned with Lansbox’s mission. Within two years, that investment yielded a 25% return. Thorough research and understanding the long-term vision of the companies involved. For others, the insight is clear: focus on industries you understand and align with your goals. Private equity can deliver, but only if you commit to patience and strategic thinking.
Echo Shao
Founder, Lansbox
Leverage Private Equity for Innovation
At Famoso, we’ve leveraged private equity to fuel our innovation in search-marketing technology, allowing us to stay ahead of the curve and deliver unparalleled results for our clients. For those considering private equity, I’d recommend focusing on investors who align with your long-term vision and can provide valuable industry connections, not just funding.
Joshua Uwadiae
Founder, Famoso