Private equity funds are groups of investors with expertise in markets that aim to invest in companies with great potential. The initial purpose of private equity funds is to increase the value of these relatively new and high-potential companies and make them more competitive in local and international markets.
The funds require external advisers in order to guide the company towards a higher growth contribution.
Private equity funds may seem full of opportunities, but are they interesting from a standpoint of profitability – risk for an average saver? Putting aside the fact that you need to have a very thorough knowledge of the financial system, we believe you have better opportunities to obtain higher returns on your investment through Housers.
Internal rate of return of private equity funds
According to recent studies, the annual return of these capital funds in Spain over a period of 10 years (2003-2013) has been 2.9%.
Although its profitability opportunities do not seem negligible, when compared to Housers, they are clearly insufficient. If you go to our opportunities section, you will see that projects such as Santa Julia or Troy offer a return after taxes of 10% for a period of 5 years.
The risk of investing with Housers is minimized. First, because the purchase is analyzed and all contingencies are covered; second because the capital you invest with will never be excessive; third, because you can diversify your portfolio of properties as much as you would like, and finally because there is always a brick and mortar physical asset supporting your involvement.
