Investment in private equity can potentially yield higher returns than quoted equities, but its special characteristics may mean it feels like a journey into the unknown for trustees. Turning to a firm with expertise and experience could help you unlock the hidden potential.

Off the beaten track

Private equity offers the potential to achieve higher returns than quoted equities, and the Myners review specifically recommends trustees consider private equity as a possible investment.

However, it has a number of special investment characteristics and risks that need to be understood before you commit to this asset class. Our advice can help you decide whether private equity is an appropriate investment for your scheme.

A key characteristic of private equity is that the variation in returns between managers is much wider than for quoted equities. Expert advice is extremely important in helping you identify a good private equity manager.

Hewitt has a wealth of expertise in this highly technical, specialised area. We can access and interpret the often scarce and complex information on the private equity industry to aid you in making your decision.

Help is at hand

We offer a range of private equity advisory services, including:

Advisory services

• Trustee training to help trustees understand private equity investment
• Advice on the appropriateness of private equity
• Advice on setting up a private equity strategy

Practical assistance

• Private equity manager selection
• Help in negotiating private equity agreements
• Monitoring the private equity arrangements
• Checking the performance figures for the private equity investments and allowing comparisons with quoted equity indices

We can also review existing private equity funds held by a client and advise on an appropriate future strategy.

Selecting the best

Hewitt has a committed and experienced team dealing with private equity, with access to hands-on experience of choosing private equity investments. We can access experienced colleagues in the US, who complement our knowledge of the European market place.

Hewitt conducts a large number of meetings each year with private equity managers, and we are not conflicted by other parts of our business seeking to raise capital for their own private equity funds.

Contact Martin Kraus via email, or by phone at +44 (0)20 7939 4307.