Direct Investments

Finding Opportunities in Direct Investing

A recent survey of family offices worldwide found that these sophisticated investors significantly favor integrating private equity opportunities as part of their investment strategies.

The study, conducted by J.P. Morgan Private Bank and the World Economic Forum, revealed that, of four key investment approaches, direct private equity investing was the most popular among single family offices: 65% of families surveyed used this strategy; among these, 12% used this model exclusively.1

Opportunities span regions, investment stages and industries, including: e-commerce, real estate, technology, media and entertainment, and basic industry. For some investors, private equity presents a way to participate in businesses in which they have lifelong experience. Sometimes, investors are particularly interested in accessing innovative companies at the earliest stages.

J.P. Morgan Private Bank sources opportunities like these for qualified clients around the globe. Our firm’s collective and complementary capabilities—the Private Bank, our $81 billion alternative investments platform, our Corporate & Investment Bank, and roster of affiliated managers—help ensure an ongoing pipeline.

Recently, we offered eligible clients an opportunity to invest in Peloton, the innovative media, fitness and technology company. To learn more about this offering and to hear Peloton CEO John Foley’s perspective on strategic relationships, click here.

Our legacy of experience and diverse investment capabilities can help you with your financial objectives and wealth challenges. We welcome a conversation with you.

1Source: The Single Family Investment Office Today, World Economic Forum, Switzerland, 2016.

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While investments in private equity funds provide potential for attractive returns, access to opportunities not available in the public markets and diversification, they also present significant risks including illiquidity, long-term time horizons, loss of capital and significant execution and operating risks that are not typically present in public equity markets. Private equity funds typically have a 10-15 year term and will begin to monetize investments after holding them for 4-5 years.

Private Equity is typically composed of Venture Capital, Leveraged Buyouts, Distressed Investments and Mezzanine Financing, which are all generally considered to be high risk, illiquid investments designed to deliver larger expected returns than publicly traded securities as compensation for their greater risk. As a result, investing in Private Equity is not suitable for all investors.

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