Private equity is an important asset class that offers certain clients a chance to invest in privately held companies not typically traded on organized, public exchanges. Because private equity may entail greater risk than public market securities, investors must meet certain regulatory requirements relating to net worth, income and assets under management.

We consider private equity investments to be long-term. Historically, long-term private equity returns have outperformed publicly traded markets. Due to their highly specialized focus and potential to add significant value over the long-run, we believe private equity can be an important component of an overall asset allocation.