The long-term mindset necessary for private equity

InvestorDaily

Investing in private equity (PE) should be viewed like a ‘marriage’, according to MLC, with a long-term mindset taken to investing in the alternative asset class. Speaking to Investor Daily, Rachael Lockyer, head of Australia PE at MLC Private Equity, discussed the considerations for advisers investing in private equity. While private markets have grown in popularity in recent years, one concern is the possibility of gated or lock-up periods which limit the redemptions available.

For this reason, Lockyer said investors and their advisers should consider any investments in PE in the same way as a marriage and ensure investors are willing to make that long-term commitment. “MLC’s evergreen Global Private Equity Fund offers monthly redemptions (where sufficient liquidity is available), but you should be investing with a 7-10 year time horizon. It isn’t a good idea to be withdrawing capital on a whim or you lose the value of compounding returns from being in a high-returning asset class for a long term”.

The rest of this article can be found at investordaily.com.au.