CDI22 Sep 2010 17:10
Gets a mention from Moneywise
PRIVATE EQUITY
Private equity companies - firms not quoted on the stockmarket - can generate significant growth for investors, but they are more risky and more likely to fail. Also it is difficult for ordinary investors to gain a direct stake in a private company.
This is where private equity trusts can come in useful. For Richard Wadsworth, partner in wealth managers Fitzallan, these trusts are an attractive satellite holding in an investment portfolio.
"Private equity can provide a different type of return to mainstream businesses," he says. "The advantages of going through a private equity trust are that you have the comfort of knowing there is an expert board of directors overseeing the investments and greater regulation - regarding valuations, for instance."
Wadsworth likes Pantheon International Participations. This is a fund of private equity funds, so it provides even wider diversification than a directly invested fund. Candover is another of his picks.