ASK THE ADVISERS

The views and opinions expressed in “Ask the Advisers” are solely those of Keith Singer. PRIVATE EQUITY

Singer Wealth

Keith Singer, JD CFPTM

Keith Singer

Singer Wealth

2 Locations: 1515 S. Federal Highway, #211, Boca Raton, FL 33432

20900 NE 30th Avenue,

Suite 600, Aventura, FL 33180

Phone: 561-998-9985

Website: www.singerwealth.com Email: Keith@singerwealth.com

Most equity investors love to buy stocks at the lowest possible price with the highest potential for appreciation and with the lowest possible risk. Although there are just under 21,000 US companies with over $100 million of annual revenues, about 18,000 of those companies are not publicly traded.* According to Blackstone, only 5% of retail investors are investing in these 18,000 companies. 95% of retail investors are limiting their investments to the relatively small 13% segment of US publicly traded companies with over $100 million of revenue. Most investors know exactly how to buy and sell publicly traded stocks. They can instantly sell at the current market price, which is set by the supply and demand of the public markets, with a click of a button or a call to their advisor. However, most investors are unaware of how to invest in the private companies. Historically that has been the exclusive domain of ultra-high net worth families, endowment funds and institutional investors. Investments in companies that are not publicly traded (private equity) have usually rewarded investors handsomely with less volatility. According to Morningstar, between 2006 and 2021, private equity has returned 14% annually to investors compared to 10% for investors in large cap publicly traded stocks. Private equity investors also enjoyed less volatility as publicly traded stocks were 70% more volatile than private equity investments. Private equity funds typically pay much lower prices for the companies they invest in relative to company earnings than public stock investors. Large endowment funds find these investments to be particularly attractive as they currently allocate over half of their assets to private investments. Traditionally these investments were reserved for large institutions and wealthy investors with minimum investible assets of $5 million. Additionally traditional private equity funds typically run for 8-10 years duration with very limited liquidity options. Now there are private equity funds available to accredited investors with as little as $1million of investable assets. There are also now private equity funds that allow investors to have quarterly liquidity options with minimum investments of as little as $50,000.

*Hamilton Lane Singer Wealth Advisors is an SEC registered investment advisory firm. Past performance does not guarantee future results. This material is for information purposes only and does not consider the investment objectives, financial situation, or particular needs of any individual.