Private equity, private debt and more alternative investments: Should you invest? Sep 10th

You may have heard friends or acquaintances talk about investing in private investments, or maybe your financial advisor has recommended them to you. There are valid reasons for all the talk around private investing of late, but also reasons for caution. Read on to learn more about the asset class and whether you should take the plunge.

What are private investments?

“Private investments” is a catch-all term referring to financial assets that do not trade on public stock, bond or derivatives markets. They include private equity, private debt, private real estate pools, venture capital, infrastructure and alternative strategies (a.k.a. hedge funds). Until recently, you had to be an accredited investor, with a certain net worth and income level, for an asset manager or third-party advisor to sell you private investments. For their part, private asset managers typically demanded minimum investments and lock-in periods that deterred all but the rich. But a 2019 rule change that permitted “liquid alternative” mutual funds and other innovations in Canada made private investments accessible to a wider spectrum of investors…