“There has never been a better time than now to invest in private equity.” – HULT Private Capital
Warren Buffett said: “Ultimately, it’s liquidity rather than lack of profitability that makes companies bankrupt and the current crisis won’t last forever. Now is the time to be greedy before the market adjusts and valuations correct themselves.”
The ideal goal of any distressed asset acquisition is to snap up a strong company struggling with liquidity. Private equity’s net asset value has grown more than sevenfold since 2002, twice as fast as global public equities. Private equity funds closed in 2019 raised almost $600bn, which was the fourth year in a row to surpass half a trillion dollars. The $595bn secured is the third- highest total on record, exceeded only by years 2017 and 2018. But even more is the growth in the face of the global pandemic: Covid 19.
With the Covid-19 crisis and the emergent global recession driving down acquisition prices, professional investors look to make use of the buyer’s market sooner rather than later. It is estimated that professional investors are currently sitting on a record $1.3 trillion in cash, while here at HULT Private Capital we come across distressed or accelerated opportunities due to Covid-19 fourfold compared to few years ago.
History shows us that things often turn around. Being in the right place at the right time is paramount. As we all experienced in the past, during the 2008 recession many companies were bought out with private equity as their perceived value at that time appeared significantly discounted and in many of those cases private equity investors few years later flourished with capital returns. Although past performance does not guarantee future results, nowadays, because of the COVID 19 pandemic impairments it appears that the same thing is happening again and there could be various investment opportunities at significant perceived valuation discounts to the estimated value or potential value of those companies’ seeking investment.
Because of the COVID Pandemic many asset-secured companies have the vital need of capital injection. This is great for private equity investors because it opens upmany investment opportunities to create real change and potentially procure strong returns. The thesis of any distressed asset acquisition is to invest in a strong asset-secured company struggling with liquidity. That is why professional investors are choosing private equity as the silent investment winner. In our opinion, an asset-secured company may be a strong company struggling with liquidity, however, we invite potential professional investors to conduct their own independent third-party due diligence and thorough evaluation to independently assess any asset-secured company they consider investing in, prior to investing.
Let HULT Private Capital show the way to make the most from Private Equity Investing of asset-secured companies and join the many professional investors that have benefited from exceptional Investment returns. Please also note that past performance does not guarantee future results.
All investments have risks. Property, private equity, or private debt investments are relatively illiquid, and it could take some time to liquidate these types of investments. The investments we introduce are from platforms we believe are designed for professional investors who understand the risks associated with property investments and are comfortable with that level of risk. We recommend investors seek independent advice and undertake their own due diligence prior to investing in any of the projects we introduce to them. Investment opportunities are not suitable for the general public or inexperienced investors. This is not retail crowdfunding and is not suitable for retail investors. Past performance does not guarantee future results.