Investing in private markets can be hugely lucrative...and private equity leads the charge

We enjoy investing in small to medium businesses. One, because as investors we think the risk-reward profile is really attractive. Two, because the demand-supply of capital actually works in our favour, rather than against us because there's just not that many people in an organised way investing in these types of businesses in the private market. But also, we have all been business owners ourselves. The heritage of Edison is entrepreneurs who've founded, built, and sold their own businesses. And we mix that within our team with experienced professional investors from private equity and from venture capital. And that allows us to find and secure great investments that are typically off market and hard to find. We think it helps us build empathy with founders because we've sat in that seat, as the business owners have. But also to be good partners. To back these people and to contribute really relevant sector expertise and broader skillsets that can mean, together, you know, the businesses can succeed.

There's certainly a growing appreciation for the role that private markets can play in a portfolio. It'll never be the entire portfolio, but many are starting to realise that there is an alternative to the public markets. But there are also some larger, quite sophisticated investors, who have been doing private market investing themselves and often quite successfully. And they're beginning to value and continue to look for managers in the space. Sometimes it's to diversify out of maybe a particular sector where they're very strong, but also it's time-consuming work. There are huge volumes of opportunities that require specialist expertise to find and secure, to execute transactions and structure them, to then help businesses as they grow, and to prepare a business for exit. And so we are hearing an appetite to back managers, particularly where they have expertise in a particular sector, focused on a particular part of the market, and can provide a diversified portfolio of businesses of a similar characteristic.

Invest in a portfolio of proven, profitable, high-growth private companies

The Edison Growth Fund invests in a portfolio of proven and profitable private companies. Edison Growth Fund is open to wholesale investors until 30 June 2023.

Edison is hosting an Investor Information webinar for potential investors on Thursday 1^st June. Click here to register. You can also learn more by visiting their site.

To learn more about the advantages of private equity compared with the listed market, you can also read Michael’s earlier wire here.