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Private Equity
Blue Sky Capital Resources Insights - How We Invest In The Private Markets?
July 2019
Private Equity has become a hot trend in the past few years. What makes private equity different and why should one consider investing in the private markets?
To state the obvious Private Equity investments are illiquid. One cannot buy today and sell tomorrow. This will affect what we are willing to pay for any investment. Simply put, if comparable to this business in the public markets are valued at 10 X EBITDA why should I pay the same price for a private company that has no liquidity? There are times there is a very good reason to be willing to pay a public market value, but one has to be able determine the “why”.
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