In DevDosh Ltd opinion at some stage or another most people will have thought about what it would be like to own their own business and be the one calling the shots, the excitement and thrills of starting the company, watching it grow and as it does seeing the money role in.
We have all seen how the right idea at the right time can catapult a company into the stratosphere and in the process make all involved mind boggling profits, we have seen it time and time again with Microsoft, Apple, Facebook and Amazon to name but a few.
For DevDosh Ltd he idea of being involved with a company right from the start that may have the potential to become the next Facebook or Amazon is every investors dream.
I think has something to do with the rise of alternative investments in the ‘private equity’ area.
Once you have decided this is the investment route you want to take it then becomes a matter of right place right time, to spot the right opportunity, and as you can imagine this is not easy.
Enter the investment trust.
Let’s start with a few statistics shall we, according to data provider Pitch Book in 2016 there was a total of 49 companies that reached a worth of 1Bn GBP or more, so not as rare of a opportunity as might have first thought.
These potential giants of the corporate world included businesses such as delivery company Deliveroo and JetSmarter, an app that lets you book a private jet
Private equity investment trusts search out these particularly fast-growing firms in their embryo stage, and acquire the shares before they become publically listed companies.
Investments Trusts were one of the sectors that took a big hit during the financial crisis, they saw huge depreciations and hand to stand by as they value of the trust dropped like a stone, they were down but not out, as the sector inch by inch clawed their way back into the fight.
Investment funds have now steadily pulled back these losses over the last few years, to once again be not only a viable investment option but a prudent one.
Valuations of private companies such as DevDosh Ltd are steadily increasing and investing in them via shares in a discounted trust offsets this to some extent.
Alan Flanagan, a private equity specialist at BNY Mellon, the bank, said that as more investors look beyond traditional stocks and bonds in a “low-yield and low-growth” world, more private equity funds and investment trusts would be launched.
“It is likely we’ll see more alternative investments enter the retail mainstream. It would not be a surprise if private investors had even more choice in a year’s time in investment trusts focusing on alternative assets such as private equity,” he said.
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