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What you need to know
about Private Equity

Key information on investing in Private Equity funds

The big three

Investing in any asset class allows you to reach your financial goals. However, you need to understand three key financial concepts: diversification, compound interest and inflation.

Diversification
You have to understand diversification, which describes the allocation of your money among multiple financial instruments, industries, and geographies. This allows you to generate higher returns, given a certain level of risk, compared to allocating your money in one investment.

Compound interest
You need to know the importance of compound interest, which refers to the money you earn on the interest you have already earned with an investment, thus, allowing you to create even higher investment returns in the long-run.

Inflation
You have to understand inflation, which describes the rise in the general level of prices, thereby reducing the purchasing power of money. Essentially, it means that your money buys less than what it used to be able to. For instance, if there is inflation of 2.5% and you saved up 100 Swiss Francs, one year ago, the purchasing power of your savings would be at 97.5 Swiss Francs today. Investment returns help you keep the purchasing power constant. Thus, if you do not invest, you loose wealth.

With iAccess Partners you realize a long-term investment, which is diversified, profits from compound interest and is less exposed to inflation.

Advantages of Private Equity

Private Equity fund investments have at least 5 clear advantages over public equity

 

A Private Equity fund screens numerous companies, before it buys one. Through a rigorous screening process the Private Equity fund focuses on selecting the most promising companies.
A Private Equity fund usually invests in many companies from different industries and geographic regions, which ensures that an investment in a Private Equity fund is well-diversified.
There are many investors in a Private Equity fund. However, when it comes to the value-creating decisions with regards to the companies a Private Equity fund owns, the fund itself acts as one owner on behalf of its investors. This ensures an entrepreneurial ownership of the companies of a Private Equity fund.
The Private Equity fund ensures a strong alignment between itself, the board, and the management team of the companies it owns with regards to ensuring entrepreneurship.
The Private Equity fund is focused on the long-term value creation of its companies.

Outperformance

Private Equity fund investments outperform public equity investments and are more resilient in down-turns.

Private Equity funds have outperformed comparable public equity by ~5 percent per year. Over the last 20 years the return with Private Equity was 3-times higher than with public equity.
Moreover, Private Equity funds are more resilient during economic downturns than public equity.

With iAccess Partners you get access to an outperforming and resilient asset class.

DISCLAIMER

Legal structure

Depending on the Private Equity fund investment opportunity, you either invest directly into the Private Equity fund or via a special purpose vehicle (SPV).

The SPV, is a legal entity under Luxembourg law and has the sole purpose of executing the investments into the Private Equity fund. Thus, the individually invested money is tied to an SPV for ~10 years, during which it cannot be accessed.

In the case of an investment in a Private Equity fund via an SPV, you become an investor in a SPV, which executes the Private Equity fund investment.

For each Private Equity fund investment opportunity, iAccess Partners transparently outlines if the investment is made directly in a Private Equity fund or via an SPV.

Private Equity investors

Private Equity has been a proven investment alternative for over 40 years. It has proven itself as an investment alternative for institutional investors and high-net worth individuals.

With iAccess Partners you can invest in Private Equity funds either directly or via an SPV, just like institutional and high-net worth individual investors.

Diversified Private Equity fund portfolio

A diversified Private Equity fund portfolio is built over time. An investment in a Private Equity fund with a lifetime of ~10 years is already well-diversified, in terms of geography, industry and timing. This is because Private Equity funds acquire stakes in multiple companies. Investments in multiple Private Equity funds can be made to increase diversification further.

With iAccess Partners, you can build a diversified Private Equity fund portfolio over time.

Invest now in Private Equity funds

and take ownership of your long-term personal wealth creation.

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Three easy steps

to become a diversified Private Equity fund investor
1
Find out more about Private Equity
2
See investment opportunities
3
Invest fully digitally in Private Equity funds