Private equity is a type of investment that involves investing in privately held companies in exchange for equity ownership. Private equity funds are typically managed by investment professionals who seek to generate high returns for their investors by improving the operations, growth prospects, and financial performance of the companies in which they invest. While private equity has traditionally been associated with large institutional investors, such as pension funds and endowments, in recent years, there has been a growing trend towards custom private equity solutions that cater to the needs of individual investors.

CPE is a type of private equity investment that is designed to meet the unique needs and preferences of individual investors. Unlike traditional private equity funds, which are often structured as closed-end funds with a fixed investment period and limited liquidity, our solutions can be tailored to the specific needs of individual investors. This can include customized investment strategies, bespoke portfolio construction, and flexible liquidity terms.

One of the main advantages of custom private equity is that it allows individual investors to gain exposure to private equity investments that are typically only available to large institutional investors. Private equity investments can be attractive to investors because they can offer the potential for higher returns than traditional public equity investments. However, private equity investments also come with higher risks and typically require a longer investment horizon. By offering customized private equity solutions, investment managers can help individual investors navigate these risks and achieve their investment goals.

Another advantage is that it can offer investors greater control over their investments. Traditional private equity funds are typically managed by professional investment managers who make investment decisions on behalf of their investors. While this can be an advantage for some investors who prefer to delegate investment decisions to professionals, it can also be a disadvantage for investors who want greater control over their investments. Our solutions can offer partners greater control over their investments by allowing them to choose their own investment strategies and portfolio construction.

Custom private equity can also offer investors greater flexibility in terms of liquidity. Traditional private equity funds are often structured as closed-end funds with a fixed investment period and limited liquidity. This means that investors may not be able to sell their shares in the fund until the fund’s investment period has ended. Custom private equity solutions can offer investors greater flexibility in terms of liquidity by allowing them to choose their own liquidity terms. For example, investors may be able to sell their shares in the fund on a regular basis or at specific intervals.

One of the challenges is that it can be more complex and expensive than traditional private equity funds. Because custom private equity solutions are designed to meet the unique needs of individual investors, they often require more specialized expertise and resources to implement. This can result in higher fees and expenses for investors. Additionally, custom private equity solutions may require more due diligence and monitoring than traditional private equity funds, which can also increase costs.

In summary, custom private equity is a type of private equity investment that is designed to meet the unique needs and preferences of individual investors. Custom private equity solutions can offer investors greater exposure to private equity investments, greater control over their investments, and greater flexibility in terms of liquidity. However, custom private equity can also be more complex and expensive than traditional private equity funds. As with any investment, it is important for investors to carefully consider their investment goals, risk tolerance, and financial situation before investing in custom private equity solutions.

So if you have ever wondered what makes CPE different you will find the answers in this video.