Robert Wilkos Talks About What Private Equity Is

John LoPinto

July 26, 2021

Robert Wilkos Talks About What Private Equity Is

Private equity is a bit different than other forms of investing, such as mutual funds or stocks.

Private equity is a bit different than other forms of investing, such as mutual funds or stocks. Robert Wilkos deals with this type of investment and would like to take a moment to educate potential investors to help them decide if this type of investment could be for them.

General Information:

Private equity is a term that refers to an investment made into companies that aren’t traded publicly. The equity comes from individuals with high net worths, or they could come from firms that buy stakes into private companies or have control of private companies.

How Private Equity Investing Works:

Robert Wilkos explains that private equity consists of you working with an investor. The investor collects funding from you and other investors. Once the investor has the desired amount of capital, he or she invests this money into companies that aren’t publicly traded. Ideally, people who invest in this type of trade pursue a high rate of return. Moreover, shareholders tend to have an investment horizon of four to seven years.

Who Invests in Private Equity:

Generally, this type of investment is for wealthy individuals only since it consists of direct investment. While you typically think of billionaires as people who make this type of investment, many millionaires also partake in the risk to reap the reward. In some cases, a person whose net worth is less than a million and will invest.

Robert Wilkos says that in many cases, the investor is looking to take control of the company’s operations or have some type of influence in the company. Therefore, a noteworthy investment is necessary to acquire it. A fund may allow you to invest with a minimum of $250,000. On the other hand, some investments require you to invest millions to gain influence in the company.

Possible Yield:

Many individuals make 10s of thousands of dollars each year in private equity. Some people who invest in private equity end up making millions in a short period. The amount you earn depends on the investment as well as how much money you have to invest.

Stakes of the Investment:

As you can imagine, private equity is a high-stakes game. You could win big or lose big depending on how the private stocks perform. As the company grows, you’ll reap the reward of the growth, possibly in a high amount. However, if the company takes a turn for the worst, you could not only not receive any reward but could also lose your initial investment.

While not everyone is ideal for the world of private equity, those who have enough funds to take the risk could receive quite a payout for an investment of this nature. Fortunately, Robert Wilkos has the knowledge and experience to help adventure capitalists enter into the world of private equity.