A new kind of private equity investment club has opened in the United Kingdom.
The Private Equity Investment Club (PIC) is offering investors an opportunity to invest in a variety of investment funds with mutual funds.
It has partnered with the Private Equity Network (PEN) to provide some of the best private equity fund offerings in the world.
Investors can choose to invest directly into an exchange-traded fund (ETF), which is the most common way to invest, or in a mutual fund.
Investors may choose to participate in a PIC fund as an employee or as an investor through an account in their company.
For the most part, PIC is focused on private equity funds, but it’s also looking to open up its platform to private equity investing in general.
“The PIC team has built a real estate portfolio and has worked with local authorities to support the development of a private equity firm in the borough of Battersea,” says PIC CEO and co-founder James Clark.
“Battersea has a vibrant private equity community and we think the private equity investors who have been attracted to Batterse can make a real difference to the development and recovery of the borough.”
In the US, the PIC’s main competitor, Equity Capital Partners, has a similar strategy in the form of the Equity Investor Fund (EIP).
While the fund invests in mutual funds, the fund itself invests in a mix of private equities, equity index funds and ETFs.
It offers some of its investors access to more than 20 different investment products.
The PIC aims to offer investors the same type of portfolio as the EIP.
“We are targeting our fund to be more than just an index fund,” says Clark.
As the founder of Equity Capital, Clark has a lot of experience in private equity.
He worked as an investment manager at Goldman Sachs and was a founding partner of the investment firm, then the first in the US.
“In my view, a private-equity fund needs to be a mix, it needs to have a diverse portfolio,” he says.
“Private equity is not a perfect investment, but you want to invest it in a diversified portfolio that you can easily diversify into.”
Clark says that while the PIB is focused more on private equids, it also aims to bring equity to investors through mutual funds as well.
“It is a unique opportunity for investors to invest and have the opportunity to own equity through mutual fund companies that are already doing it.”
It will also be able to take a stake in a number of private-market funds, including the private-investor-owned funds and private-markets funds, as well as hedge funds, which are not typically part of private capital markets.
For now, PIB will only be offering mutual funds that have a balance sheet of at least $1.5 million.
Investors are limited to 100,000 PIB shares.
Equity Capital plans to have more private equity investments available to its investors in the coming months.
For more, read our coverage on how private equity companies are transforming the financial landscape.