Private Equity: What is it, can It Help You Build Wealth... and do you already invest in it without realising?
Financial AutonomyShow Notes
Private equity used to sound like something reserved for investment bankers and the ultra-wealthy, but chances are, you may already be invested in it without even knowing.
So what actually is private equity, why are large investors willing to lock money away in private businesses for years, and what are they hoping to get in return?
In this episode, Nick is joined by former investment banker Stephen Zhang to break down the world of private equity and private credit. They look at what makes these investments different from buying ordinary shares, why super funds use them, and the trade-off investors make when they give up liquidity in pursuit of diversification and potentially higher returns.
Inside this episode:
Why private equity investors can make money very differently from someone buying shares on the ASX
The reason investors may accept less access to their money in exchange for greater return potential
Private equity vs private credit and why the difference matters
How large investors use private assets to diversify beyond traditional markets
Why you may already have private equity exposure sitting inside your super without realising it
What higher potential returns can mean for the level of risk you're taking
More from Financial Autonomy
UPDATED: This episode was originally published with the wrong episode audio; it has been republished with the correct audio. Thanks for your patience!
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