Home Funding & Finance Survey: high-net-worth individuals are looking to invest in private companies

Survey: high-net-worth individuals are looking to invest in private companies

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With business and consumer confidence languishing, it would be logical to think that investor confidence would be similarly depressed. However, according to a recent survey of 4,169 Australian investors conducted by Wholesale Investor, investor sentiment is buoyant.

The statistics revealed:

  • 76% of investors are seeking investment into private companies
  • 53% have $500k or more to invest
  • 72% believe now is a great time to invest
  • 79% of investors have over 50% of their funds in cash, ready to invest
  • 91% would invest in an early-stage/start-up if a strong Board / Management was in place and in the preferred sector
  • 55% said their biggest challenge was finding suitable deals
  • 63% were looking to invest directly into companies
  • 61% sought an equity stake of less than 20%

In addition, the survey revealed several positive factors influencing the private company market. These include:

  • Former MDs and CEOs are now actively pursuing high-growth businesses.
  • Many smaller venture capital and private equity firms are forming and looking to gain exposure to high quality companies.
  • Larger private firms are taking advantage of market conditions and looking to make strategic acquisitions.

Contrary to the prevailing attitude of doom and gloom, these figures reveal that this is a golden period for business – for those investors and entrepreneurs who are prepared to see the bigger picture, take a calculated risk and back themselves. A crisis for some is a blessing for others.

Read the survey results here (PDF).

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