Investment Management

Private Equity 101

For investors seeking potential to enhance the diversification, growth and risk/return profiles of their portfolios, private equity may offer an attractive complement to traditional investments.

To learn more about Voya's Private Equity option, the Pomona Investment Fund, please click here or call (855) 211-3220.

What is Private Equity?

May 1, 2016

Private equity — often considered an “alternative” asset — typically refers to investing in companies that do not trade on a public securities exchange.

Learn more by watching our educational video on private equity or by reading the materials below.

An Overview of Private Equity Investing

What Is Private Equity?

What is a Secondary?

Investors often gain access to private equity through limited partner interests in new or established private equity funds. Secondary investors buy established fund interests from other limited partners.

Learn more by watching our educational video on secondary investing or by reading the material below.

What is a Secondary?

 

An investment in the private equity involves a high degree of risk, including the risk that the entire investment may be lost. Private equity investments are not suitable for all investors. Before making an investment decision, a prospective investor should (i) consider the suitability of this investment with respect to the investor’s investment objectives and personal situation and (ii) consider factors such as the investor’s personal net worth, income, age, risk tolerance, and liquidity needs.

Private equity investments are subject to various risks. These risks are generally related to: (i) the ability of the manager to select and manage successful investment opportunities; (ii) the quality of the management of each company in which a private equity fund invests; (iii) the ability of a private equity fund to liquidate its investments; and (iv) general economic conditions. Private equity funds that focus on buyouts have generally been dependent on the availability of debt or equity financing to fund the acquisitions of their investments. Depending on market conditions, however, the availability of such financing may be reduced dramatically, limiting the ability of such private equity funds to obtain the required financing or reducing their expected rate of return. Securities of private equity funds, as well as the portfolio companies these funds invest in, tend to be more illiquid, and highly speculative.

General Risks of Secondary Investments. There is no established market for secondaries. Moreover, the market for secondaries has been evolving and is likely to continue to evolve. It is possible that competition for appropriate investment opportunities may increase, thus reducing the number and attractiveness of investment opportunities available to investors and adversely affecting the terms upon which investments can be made.

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