TLDR:
- Private equity and venture capital offer diverse investment opportunities
- Retail traders can access private equity through specific assets
When nested within a diverse portfolio, private equity and venture capital investments provide unique opportunities for retail traders. While traditionally inaccessible to retail investors due to high minimum investment amounts and net worth requirements, three tradable assets now offer retail traders access to private equity and venture capital opportunities that were previously out of reach.
The first asset, ARK Venture Fund (ARKVX), managed by Cathie Wood, provides retail traders with venture capital investment options. Despite the fund’s relatively high expense ratio, it offers access to growth opportunities in companies like SpaceX and OpenAI. Brookfield Renewable Partners (BEP) is another option that allows retail traders to invest in sustainable solutions and distressed assets for potential long-term returns. Lastly, Perimeter Solutions (PRM) promises “private equity-like returns” with strong performance and growth potential.
Overall, these three assets present viable options for retail traders to diversify their portfolios and benefit from private equity and venture capital investments that were once reserved for institutional investors.