Investing in Private Equity



  • Hi all, new investor here. Curious to know if anyone has dabbled in private equity-related investments.

    Recently saw this piece of news on private equity bonds issued by Azalea. Did anyone subscribe to it? Anyone knows how to invest in a private equity fund in general?

    https://www.businesstimes.com.sg/companies-markets/astrea-iv-private-equity-bonds-retail-tranche-interest-rate-set-at-435-pa


  • Emergent

    Those PE bonds are not actually PE investments. You are actually more concerned with the issuer (PE company) fulfilling their obligations no matter what the performance of the underlying portfolio.

    They did say it’s “backed” by cash flows from the companies they invested in but how it works is they actually try to meet promised rate if cash flows not enough. They also keep the extra. So I’m my opinion, you’re not making a bet on the performance underlying portfolio. Instead you are betting on the credit worthiness if the PE company.

    There may be more risky tranhces (more gains but absorb losses) not open to retail investors.


 

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