
Private equity returns are more important than you think.. for traditional investors at least...here's why:
If you look at the historical performance for the asset class, it's pretty obvious.
The numbers speak for themselves: 1994-2024, PE averaged an annualised return of 15% vs. 10% for major public equity indices like the S&P 500.
But should you care? Frankly a 5% boost feels like nothing.
That's because the human mind is not wired to work in exponentials....the fact is 5% more yield per annum on your investments would probably mean you retire a decade earlier than your peers. Let that sink in.
The problem is in access. Typically, investment in PE funds requires you to be a market counterparty/qualified investor - think: billionaire industrialist/investor, or at least a high net worth client with pre-determined minimum income and assets.
Most people don't make the cut.
What can ordinary people do to qualify for the deals of their choice?
Platforms like Robinhood and Republic are bringing private shares your way, including Anthropic, SpaceX, Stripe, OpenAI, Anduril Industries and more.
But then again, what do ordinary people understand of the risks of an illiquid, opaque and probably unfavourably valued deal pushed to retail? How can you even research companies like this?
Private stocks are cool - and we'll be adding support for private stocks very soon! - but fundamentally a different risk-reward proposition than investment in public stocks.
And we've got a better idea: use the Demether platform
(Alpha now live!! https://alpha.demether.io) to generate yield on assets that you understand and trust to bridge the gap.
Check it out - current yields (above and beyond your usual dividend yield) on the S&P 500 is around 10% over the past 30 days at the time of writing.





