Alternatives 101: Private Equity

In this episode of Alternatives 101, we cover Private Equity as an asset class. We begin with a high-level definition of what private equity is, how funds are structured and operate, and why institutional investor interest in private equity has grown so much in recent years. We then cover market segmentation, including a look at the major subcategories within private equity: venture capital, growth equity, buyout, private debt/mezzanine, and distressed/turnaround. Finally, we examine investor expectations (especially in contrast to traditional investing), including the advantages and risks of private equity, the manager search process, performance measurement, and fund terms, structure, and fees.

Presented by Marquette’s Director of Private Equity, Derek Schmidt, CFA, CAIA

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Marquette Associates’ Alternatives 101 video series covers each of the major alternatives asset classes, with guidance provided by several of Marquette’s research analysts and directors. In contrast to traditional investments, alternatives investing includes asset classes other than stocks, bonds, and cash (reference our Investing 101 series for more information about traditional investing). This series aims to introduce trustees, staff, and other investors to the key terms and concepts they may encounter when investing in these typically less familiar asset classes.

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