What is the Private Equity asset class?
Private Equity is the largest alternative investment asset class, comprising about 40% of all alternative assets. “In the past 20 years, mutual funds investing in unlisted stocks have performed clearly better than listed stocks*,” says Fund Manager Petri Lehtola.
Private Equity funds invest in unlisted companies. They create value to investors by making operational improvements to the companies and financing investments in growth. “In the past decade, pension funds and other institutional investors have aggressively increased their investments in Private Equity funds,” adds Lehtola. Today, Private Equity is the world’s largest alternative asset class, with a total sum invested of as much as 6,000 billion euros**.
OP Private Equity special common fund in a nutshell
Our latest fund, OP Private Equity special common fund, invests in unlisted stocks mainly through other mutual funds. The fund’s investment universe is global and through the selection of investee funds, its portfolio is highly diversified with hundreds of invested companies.
The fund is open for subscriptions and redemptions on a quarterly basis. The fund will be initially available only at OP cooperative banks, with the option to buy digitally to be added later. The minimum initial subscription is 10,000 euros. Subsequent subscriptions have no minimum sum.
*Source: MSCI World Index compared to Preqin Private Equity Index
**) Sources: McKinsey & Company, Preqin, Tela