What is Investment Management
9 апреля, 2024Difference Between Private Equity & Hedge Funds
9 апреля, 2024Private Equity for Real Estate
Private equity is an investment in exchange for a share of ownership in a company that is not publicly traded. Direct investments are capital investments in tangible assets that give the investor complete control over the company's activities.
Opening a private equity fund for real estate
Setting up a private equity fund:
- Is one of the most popular ways to invest in real estate for the long term;
- Provides an opportunity to diversify the investment portfolio and control the level of risks due to direct participation in the management of the investment object;
- Allows you to accumulate investor funds in volumes sufficient to finance several projects at once.
Private equity funds take on a much more active role than real estate investment funds, allowing them to focus on properties with a specific value and opportunities for profitable redevelopment, renovation, or reconstruction. They are focused on longer-term and higher returns without any requirements for dividend distribution.
How to set up a private equity fund: After the fund's formation, a search for "portfolio companies" is carried out. Investments are then made to achieve the set goal.
The asset management fund's investment strategy aims to generate income by placing funds for the long term.