Secondary Markets

Private equity positions

Secondary Alternative Investments

Secondary market alternative investments present private investors and institutions with access to liquid private equity placements. Private equity is typically deemed as an illiquid asset class, as capital is committed to facilitate growth through the course of the business cycle.

Private equity business cycle

Private equity is provided to help young business expand. A number of stages exist as the business cycle develops from stages of infancy towards maturity and transmission.

The secondary market provides investors with a solution to liquidate capital at an earlier stage of cycle. As a business develops and value is created, the demand for equity increases, driving asset value upwards.

Private equity as an alternative investment

Private equity investments in comparison to traditional equities present investors with the opportunity to capitalize on a unique return profile. Over time, private equity has proven to outperform public markets leading to explosive wealth creation for investors with a more aggressive appetite.

Driving global innovation

Whilst many investors prefer the apparent security of trading publicly held positions in established companies, private equity investors help to drive market innovation and in more recent years have been instrumental in the development of eco-friendly developments in the form of green energy development.

Furthermore, private equity funding helps small business to address much wider, global challenges that are perhaps often overlooked by more established corporations. Agriculture as a private equity sector continues to grow in the face of rising global food demands.

As the global population rises, food shortages are predicted to impact both the developed and emerging world. In this example, private equity provides investors with the opportunity to capitalize in rising demands whilst participating as a greater good for humanity.

INVESTOR ACCESS

SECONDARIES

Crystal Century Investment provides private investors and institutional clients with access to a number of private equity entry points. Categorized into three main sections, each option intends to align investor preferences with varied return levels in consideration of risk assumed.

DIRECT PRIVATE
EQUITY

Providing capital at intervals of a developing business cycle. Dedicated teams work closely with the management of exceptional growth stage companies to provide business expertise and to execute strategy.

At each stage of the value chain, investors are able to capitalize on their gains through secondary market demand. Investment during the very early stages of the cycle, with a long-term holding perspective will realize exceptional profits. The risk profile of such investments is positioned at the higher end of the scale.

DIRECT PRIVATE
FUNDS

Diversification benefits lower the risk profile as direct private equity funds consist of many private placements positioned at various stages of the business cycle. Investor capital participates in the activity of businesses across sectors and regions.

Management strategies typically remain long-term, however as companies in the more advanced stages of the business cycle drive demand, dividend distributions are paid to investors as secondary market profits are realized.

FUND OF
FUNDS

Leveraging on the activities of private businesses, and in some instances the continued management of acquired and newly listed companies, fund of funds provide private investors with capital limits an opportunity to participate in a pool of growth stage companies.

The benefits of diversification drive risk levels down as investors benefit from periodic dividend distributions. Fund of funds typically require investors to hold positions for minimum periods, of which horizons are dictated by management dependencies.