Why you should tread the private-equity investing route cautiously

In the absence of an exemplary track record, and high fees, investors should take this route cautiously

Many high net worth individuals (HNIs) looking to diversify their portfolios beyond the listed space consider foraying into 

private equity. Many get lured by the promise of extemely high returns. However, only sophisticated investors, who understand the risks well, should venture into this space. Besides a minimum investment size of Rs 10 million and above, investing in private equity also requires the patience to stay put for a tenure of 10 years, or sometimes even more. Experience suggests that returns, adjusted for risk, often turn out to be lower than in the listed space.  

Past performance is uninspiring  

Private equity investing in India