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Showing posts from April, 2022

Why Is Private Debt So Popular?

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Private debt is the capital invested by investors in the private debts of companies. These debts give the investor a chance to invest in the ownership shares of the private company. They are not traded or issued in the public market which eliminates the chances of common investors entering the domain. Private debt  is a well-known alternative class available in the market. It is quite popular due to its low interest rates that attract many investors to add this alternate class to their investment portfolio. These interest rates have lowered government and corporate bond yields with lower borrowing costs which make them an obvious add in their portfolio. Different categories of private debt There are different types of private debts available in the private market, each coming with its own set of risk to return profiles. Investors can easily pump in their capital in these private debts through platforms that provide access to such debts such as  Cgs Cimb . However, it is vital for inves

How are Private Equity Funds Structured?

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Private equity  gained prominence from the 1980s, when technology in the United States got their much-needed boost from venture capitals. This allowed many fledging and struggling companies to raise capital from private sources rather than approaching the public markets. These private equity funds promised great return potential to the investors, however, there were certain drawbacks as they were not readily available to the average investor. Companies usually require a minimum investment of $200,000 which targets the institutional investors who have such kind of capital at their disposal. Even if you have cleared the first hurdle of having the minimum requirement, it is recommended for you to understand these funds’ typical structures. Basics of Private Equity Fund Private equity funds are an alternate investment class as they are private and not listed on any public exchange markets. High net-worth individuals and financial institutions invest directly into these companies with these