Private equity investment services and solutions
Seeking favourable returns through private equity investment
Private equity has a history of performance that often exceeds 8% return per annum, making it an attractive asset class for investors. It encompasses a large ecosystem of investment opportunities around the world, covering more companies listed than equities. Some distinct strategies uniquely exist within the private equity market, including early-stage venture capital and corporate turnarounds.
Building a private equity portfolio is very different from building a traditional portfolio. It's a long-term process implemented over the life of a portfolio. Consistently refreshing a portfolio with new commitments is resource intensive. Good relationships with private equity managers is a critical component of a successful private equity investment. As an experienced adviser and implementator, we connect clients with general partners and enable new limited partners to build their portfolios on a solid foundation.
Potential benefits of private equity investment
-
Higher returns due to market inefficienciesPrivate equity markets tend to be more inefficient than public equity markets, particularly for small to medium organisations. Private equity firms can take advantage of the mispricing that exists and potentially earn higher returns.
-
Expanded universe of investment opportunitiesAbout 99% of midsize organisations are not traded on listed equity markets and only 3% are owned by private equity firms1. Private business therefore represent a significant opportunity for investors.
-
An illiquidity premiumA lack of liquidity in private equity markets (in comparison to public markets) provides an upside for investors in the form of an illiquidity premium. Those who deploy capital to private equity may potentially earn higher returns as a result.
Five steps to define your private equity investment strategy
Uncovering opportunities in private equity
-
Secondaries
The private equity sector has a well-established secondary market. We can help you identify opportunities in mature private companies. -
Venture capital
At the smaller-cap end of the private equity spectrum lie opportunities to harness high growth potential, while supporting innovative businesses and start-ups. Contact us to find out more. -
Co-investments
For large, sophisticated investors, making co-investments with trusted managers can help fine-tune exposures and enhance a private equity portfolio. -
Impact investing
We can help you source private equity opportunities to deliver on your impact investment goals.
References to Mercer shall be construed to include Mercer Financial Services Middle East Limited and/or its associated companies.
© 2023 Mercer Financial Services Middle East Limited. All rights reserved.
This content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity without Mercer's prior written permission.
Mercer does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.
This does not constitute an offer to purchase or sell any securities.
The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed.
This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances. Mercer provides recommendations based on the particular client's circumstances, investment objectives and needs. As such, investment results will vary and actual results may differ materially.
Past performance is no guarantee of future results. The value of investments can go down as well as up, and you may not get back the amount you have invested. Investments denominated in a foreign currency will fluctuate with the value of the currency. Certain investments, such as securities issued by small capitalization, foreign and emerging market issuers, real property, and illiquid, leveraged or high-yield funds, carry additional risks that should be considered before choosing an investment manager or making an investment decision.
Information contained herein may have been obtained from a range of third party sources. While the information is believed to be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential, or incidental damages) for any error, omission or inaccuracy in the data supplied by any third party.
For the most recent approved ratings of an investment strategy, and a fuller explanation of their meanings, contact your Mercer representative.
Mercer universes: Mercer’s universes are intended to provide collective samples of strategies that best allow for robust peer group comparisons over a chosen timeframe. Mercer does not assert that the peer groups are wholly representative of and applicable to all strategies available to investors.
Please see the following link for information on investment management index definitions.
Not all services mentioned are available in all jurisdictions. Please contact your Mercer representative for more information.
In the United Arab Emirates, Mercer’s Services are delivered by Mercer Financial Services Middle East Limited (“MFSMEL”). MFSMEL is registered with the DIFC, License No. 0939 and regulated by the Dubai Financial Services Authority (DFSA).
For the conflict of interest statement of Mercer Investments, of which MFSMEL is a part, contact your Mercer representative or see https://www.mercer.com/conflictsofinterest.
