Opinions expressed by Digital Journal contributors are their own.
Private equity has positioned itself as an attractive asset class for a broad range of investors in recent years. Attracting a staggering USD$10.7 trillion in capital over the past decade, the industry continues to appeal to LPs who want to diversify their portfolios and avoid the limitations of the public markets.
This surge in private equity’s popularity can be attributed to its potential for delivering higher returns compared to traditional investment avenues. It is important, however, to recognise that the sector has its unique challenges and complexities. That said, the spread of performance in private equity is much wider than in other asset classes, meaning that selecting and accessing the best quality private equity managers with proven expertise is crucial to achieving success.
Considering that PE firms invest in private companies that are not part of the public stock exchange, the main challenge LPs face when it to comes to accessing premier investment opportunities is deal sourcing. Sourcing can often be a very comprehensive and time-consuming process due to the level of due diligence required and lack of top-quality contacts. On average, a single firm evaluates around 80 investment opportunities before making one single investment and it is common that a deal may require 20+/- meetings before it is even closed.
It is often the case that LPs lack access to a thoroughly curated and certified pool of investment opportunities. The investment landscape can be rife with complexities and uncertainties, making it imperative for LPs to seek out advisors, networks or platforms that can streamline the process and also provide reliable and verified investment options. By doing so, LPs can gain confidence in their investment decisions, knowing they are backed by a carefully vetted selection of opportunities that align with their risk tolerance and investment objectives.
Rising to this challenge, UK-based private equity fund placement manager, Quest Fund Placement has launched QuestInvest, a platform that grants investors direct access to top-tier fund managers through an online portal. The platform, which stands as a unique offering for the market, provides users with end-to-end functionality from onboarding investors to subscription, alongside captivating video content and real-time industry updates.
Acting as an intermediary, platforms like QuestInvest, help foster lucrative and efficient relationships between GPs and LPs. With the aim of exploring high-potential prospects in the thriving European mid-market, LPs can feed off Quest’s expertise and gain direct access to top-tier fund managers, reducing the deal sourcing and due diligence processes.
With over 20 years’ experience and an outstanding track-record, the QuestInvest team not only streamlines the investment process, but also grants access to a trusted network of high-quality private equity professionals and funds. This provides investors with more secured investment options, as all funds on the platform undergo diligent selection processes from the GP’s. QuestInvest therefore combines industry expertise with vision driving performance, offering customers a seamless and qualified way of accessing potential investment opportunities.
In contrast to standard investment platforms such as Moonfare, QuestInvest distinguishes itself by providing access to top quality, middle market GPs. In addition, because of the wide scope of GPs available on QuestInvest – ranging from emerging markets to established funds – and the different international markets in which it operates, LPs can benefit from having a diversified portfolio and hence increasing their chances of outsized returns.
It goes without saying that navigating the intricacies of private equity demands a nuanced understanding of fund selection, due diligence, and risk management. In this dynamic landscape, LPs must remain vigilant and discerning to capitalise on the full spectrum of opportunities while mitigating potential pitfalls. In this context, the role of platforms like QuestInvest becomes increasingly fundamental, providing direct access to top-tier fund managers that empower LPs to harness the full potential of private equity investments while saving time and minimizing risks.
