ALPS Fund Services has launched a mutual fund that will invest in 30 to 50 stocks of publicly traded private equity companies which, in turn, have investments in more than 1,500 private businesses. The fund, called the Listed Private Equity Fund, is sub-advised by Red Rocks Capital, a specialist in private equity investment.
“Private equity has been the cornerstone of institutional investors’ asset allocation strategies for years, but, until now, most other investors haven’t had access to this important asset class because of very high investment minimums and a lack of liquidity since investments are typically tied up for more than seven years,” said ALPS Director of Institutional Advisory Services Corey Dillon.
Adam Goldman, co-founder and managing director of Red Rocks Capital, added: “The Listed Private Equity Fund will democratize private equity by providing investors with access to the best and brightest minds in the business world. The fund offers investors four attractive features: portfolio diversification, investment transparency, liquidity and the potential for consistently strong returns with significantly less risk when compared to a single private equity partnership.”