You can see the writing on the wall. When institutions need an exit plan, who do they call? Mom and Pop. That’s the situation with private equity investors looking to exit their overvalued positions. As the WSJ reports:
Some are moving full speed ahead. State Street has joined with Apollo to launch two ETFs and a target-date fund 401(k) fund while BlackRock spent $27 billion buying private-fund managers and data provider Preqin. Vanguard has announced a more limited partnership with Blackstone to market an interval fund, which limits client withdrawals, that mixes private and public investments and Capital Group is doing the same with KKR.
The firms are developing new products mixing private investments with public stocks and bonds that can be sold quickly if individuals need to access their money. The funds are often sold through financial advisers and wealth managers tasked with ensuring they are marketed to suitable clients and in modest amounts.
There is ample cause for concern, Moody’s says.
Action Line: Understand what’s going on here so you’re not caught off guard. When you want help creating a plan for your retirement, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
Read more about private equity here:
- Private Equity Is the Next Big Thing Coming for YOU
- Private Equity Is the Next Big Thing Coming for YOU: Part II
- Private Equity Is the Next Big Thing Coming for YOU: Part III
- Private Equity Is the Next Big Thing Coming for YOU: Part IV
- WARNING: Private Equity Investing Coming to a Retailer Near You
- OVERHEATED FEES: States Peak Under the Hood at Private Equity
- Private Equity Burns State Pension Fund with FTX Investment
