Private equity and venture capital are regaining their close-up among institutional investors since the 2008 financial crisis.
The nature of private markets, though farther out on the risk continuum, could lead to investments that offer sizable and uncorrelated returns to existing portfolio assets. Investors can benefit from greater diversification and dampened volatility.
But diversifying into this asset class isn’t about having more tools. It’s about the right tools. A magnifying glass isn’t helpful when you need to examine the moon.
Most private equity and venture capital deals are done out of the public eye. About half of private equity firms surveyed by Bain said they have a well-operating business model, but less than 5% of them actually deploy their model in a consistent manner.1
Aberdeen has been an active and committed investor in private equity for more than two decades. Our boots-on-the-ground approach helps us do more than scratch the surface when vetting private equity and venture capital managers. Supported by one of the world’s largest independent asset managers, our global team of more than 40 investment professionals makes it easier to access the information and people that enable the sorting and evaluation of suitable investments.
Our private equity team can tailor solutions to specific individual needs, and specializes in global mid-markets. Our venture capital team has spent more than two decades building its tools to source and track new funds and spinouts.
1 Bain & Company, “Global Private Equity Report,” 2015.