The Expansion of Private Equity Indices and Access for Retail Investors

Introduction:
Private equity has long been considered an exclusive asset class reserved for institutional investors and high-net-worth individuals. However, recent developments in the financial industry have brought new opportunities for retail investors to gain exposure to private equity through the expansion of private equity indices. In this article, we will explore the growing availability of private equity indices and highlight a few companies that offer access to this asset class for retail investors.

1. Cambridge Associates Private Equity Index:
   The Cambridge Associates Private Equity Index provides a benchmark for measuring the performance of private equity investments. This index tracks the performance of over 1,300 private equity funds, allowing investors to gauge the performance of the asset class. While retail investors may not directly invest in the index itself, it serves as a valuable tool for understanding private equity performance trends and the potential benefits of including private equity in a diversified portfolio.

Link: Cambridge Associates Private Equity Index

2. iShares Global Private Equity ETF:
   BlackRock’s iShares Global Private Equity ETF offers retail investors an opportunity for indirect exposure to the private equity market. This ETF tracks the performance of the Red Rocks Capital Global Listed Private Equity Index, which holds publicly traded companies that are associated with private equity investments. While this ETF does not invest directly in private equity funds, it provides investors with a diversified portfolio of publicly-traded companies involved in the private equity ecosystem.

Link: iShares Global Private Equity ETF

3. SharesPost 100 Fund:
   The SharesPost 100 Fund is a mutual fund that offers investors access to late-stage growth companies and pre-IPO market opportunities. This fund focuses on investing in private technology companies that are expected to go public within 18 months. While not strictly a private equity index, the SharesPost 100 Fund allows retail investors to gain exposure to the potential growth of private companies before they become publicly traded.

Link: SharesPost 100 Fund

4. Hamilton Lane Horizon Fund:
   Hamilton Lane is a leading global private markets investment management firm. They offer the Hamilton Lane Horizon Fund, a mutual fund providing retail investors with access to a diversified portfolio of private market investments, including private equity. The fund aims to deliver long-term capital appreciation by investing across various private market strategies and sectors. Hamilton Lane’s expertise in the private equity sector makes their Horizon Fund an attractive option for retail investors seeking exposure to this asset class.

Link: Hamilton Lane Horizon Fund

Conclusion:
The expansion of private equity indices and the introduction of investment vehicles like ETFs and mutual funds have opened doors for retail investors to participate in the historically exclusive asset class of private equity. While direct investment in private equity funds may still be limited to institutional investors and accredited individuals, private equity indices and related investment products provide valuable insights and diversification opportunities. Companies such as Cambridge Associates, BlackRock’s iShares, SharesPost, and Hamilton Lane offer accessible paths for retail investors to gain exposure to the private equity market, enabling them to potentially benefit from the long-term growth and returns offered by this asset class.