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Private capital markets   are known to be less volatile, more rewarding but also more costly. Thus, investing in them is not similar to putting your money in the public markets. If you are just starting out as a private market investor, it is quite natural to feel confused and wonder what hiccups lay in your path. To help you avoid them with ease, here are 3 features of private capital markets - 1)These are typically long term markets Since the public markets are easily accessible, they have a lot more volatility and volume when compared to the private capital markets. Due to this, it is possible for you as an investor to quickly buy and sell your publicly listed financial assets. However, the same can not be said for the private capital markets and one needs to consider staying invested in a private market financial asset for a relatively longer time range when compared to their public counterparts. You should also be aware of the lock-in period that many of the private market fin...

Investing in   unicorn private equity  is quite beneficial as it is a great way to earn enormous returns on your investment. Established MNCs like Google, Apple, Microsoft, and their peers do not believe in expanding their business by starting a new venture in the desired direction. They rather buy out the control of the investee company’s management and merge the smaller business under their banner. This is highly rewarding to an investor as buyouts are generally above the average valuation of the unicorn startup. What are the 2 main features of a good unicorn private equity investment opportunity? The management that leads them is quite skillful The success of any company depends largely on the management that leads it. The same is applicable even more densely to unicorn startups. Since the workforce of a unicorn startup is smaller compared to its well-established counterparts, there is a direct need for the founder of the company to inspire the workforce through their actio...

Hedge funds used to be conventionally associated with public markets since the beginning. They invest heavily in public entities and companies that are publicly listed. This allows them to encash their profits in bulk when they sell their shares at the right time. This cycle is what made hedge funds richer and more profitable. However, with the constant advents of start-ups, and more venture capitalists and angel investors investing in them, this has led to the creation of  private hedge fund . Pertaining to your question, hedge funds to invest in private companies for the following reasons: 1.Higher returns It is no secret that start-ups are, in a manner of speaking, a cash cow. Established private companies used to give higher returns before the era of start-ups. However, they have been forced to evaluate their business models, which is why hedge funds tend to avoid. Start-ups with successful ideas and business models give higher returns to their investors, which has attracted he...

  Hello, Unicorn companies are a private help start-up with a valuation of $1 billion or above. This term is generally used in the venture capital industry to describe such companies. Such companies usually do not accept moderate-sized investments. Investors investing in such unicorn companies are generally accredited investors and financial institutions. Unicorn investment  is not easy as investors need to conduct thorough research on the start-up company. However, investing in the right unicorn company can offer high returns to the investor. To further help you understand, here are a few reasons why you should invest in a unicorn start-up company: They are less volatile The price valuations in the public market keep fluctuating constantly keeping your investment portfolio at risk. As unicorn companies are a part of the private market and hence their price valuations do not fluctuate constantly like the public markets. The market is far less volatile and investing in a unicor...

  An initial coin offering (ICO) is offered to the investors who help raise money for capital which can be then invested in start-up companies. As start-ups offer lucrative returns for the investments done in them, some companies offer ICO instead of IPO to their investors. However, due to the crash in the market which led to a huge chunk of wealth getting wiped off in the crash, the SEC stopped ICO and this led to the creation of  security token offerings . The ICO weren’t compliant with regulations, which led to the birth of STO. Given below are the types of STOs: 1. Equity tokens This type of token is an alternative to the traditional form of stock that you get when you invest your money in the market. The advantage of STO is that it is transferred to the buyer after they invest their money. The token is also stored in a blockchain network which helps in maintaining a proper record. 2. Debt tokens Debts are offered for a short-term duration with higher ROI by investors to a...

  Hello, There are many types of investments an individual can make to gain profits in the market. It is advisable that people diversify these investments to minimalize the risk their investment portfolio is exposed to. Real estate investment trusts (REITS) offer just that! There are various types of REITS a person can invest into. Private REITS  is a good investment option to enter the real estate market. If you are confused about private REITs being a good investment option, here are a few reasons why you should invest in them. Higher returns than their public counterparts Regardless of which type of private REITs you decide to invest in, the good ones have a track record of providing higher returns when compared to their exact public counterparts. Private REITs provide their investors with higher returns on their invested capital amount than public REITs on the average comparison. They are not very volatile Since private REITs are not listed on the public indices, they are ...

  Hello, There are various REITs that people can invest in while planning to invest in them. It is considered to be one of the best profit-gaining industries present in the market. However,  REIT investing  could at times get confusing for investors to choose the right REIT to invest in. To help you with this, I’m listing down a few tips that you can follow while choosing the right REIT to invest in. Research about the returns generated by the REIT A well-performing REIT would have a proven record of generating consistently good dividends for its investors. As an investor, it is important to analyze the returns generated by the REIT. While opting for REIT investing, you should research about the various types of REITs that are available to you and invest in the REIT according to the results of your research. The REIT wouldn’t provide you with good dividends if it is not flourishing in its sector. Hire a highly skilled individual or an agency to invest for you You would be...

  Bonds are typically fixed income instruments that represent the debt incurred by the borrower (i.e. Governments and corporations) by accepting investments from multiple or individual creditors (i.e. people like you).  An issuer usually pays the investor a fixed return when their bonds mature.   There are various types of financial bonds available for you to invest in. With the bonds being offered by governments and corporations around the globe, it can get quite confusing to choose the right investment option among the many available. However, exchangeable bonds are quite popular among the lot as they offer quite attractive returns. If you are interested in them and wish to know more about them, here’s a complete beginner’s guide to exchangeable bonds for you!   What exactly are exchangeable bonds? Exchangeable bonds are essentially an agreement between an issuer and the bond-holder.   This gives the latter an option to exchange the bonds for the su...