WA MAGAZINE JanFeb PDF A - Flipbook - Page 6
UPFRONT
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MODEL PORTFOLIOS
THE ALT EDGE
Private Equity Secrets Revealed
W
e all hear the call of private
equity getting louder, but
when it comes to deployment, details get scarce. Where are
advisors steering their clients?
Crystal Capital Partners runs an alternative investment platform for over
200 advisory firms, so they see a lot of
deals at all stages of the process. When
they polled their people, higher returns
(64%) edged out the diversification
benefits (62%) as the top reason they
want in the asset class at all.
And when we think about chasing
returns, we think about growth opportunities, especially technology, with
healthcare a few yards behind. Almost a quarter of the advisors Crystal
6 | JAN/FEB 2025
talked to have given more than half of
their clients a taste of growth.
Granted, these are people on the
platform, so they’re already committed to offering clients more than
the public stuff that dominates index
funds and retail portfolios alike.
For these people, the question isn’t
How can you incorporate
private equity in your practice
offerings? Advisors favor
growth sectors for higher
returns over diversification
opportunities.
“whether” or “how” to deploy private
equity but which specific aspects of
that universe they want to incorporate
into their value proposition.
Their clients embrace and to some
degree understand the notion that
companies can expand more aggressively without going to public markets
for cash. Some are probably jealous
of pals who brag about the great startup they found.
Be that pal for your clients. The
blockbuster opportunities are out
there, and that’s what they want. All
the heavy institutional-grade strategies can take a back seat.
After all, most of our clients aren’t
exactly Harvard. Keep it simple.
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