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NewVest lowers barrier to private equity investing

Founded by an Israeli who has raised over $5 billion in private investments, NewVest offers easier access to a high-performing asset class

(Source: Preqin Quarterly Index)
(Source: Preqin Quarterly Index)

Private equity has outperformed other investment markets over the past 20 years. But it has been an exclusive club, since private equity funds often require minimum investments of up to $25 million.

Edward Talmor-Gera, Founder and CEO of NewVest, based in Tel Aviv, wants to change that, bringing access to private equity to a much broader range of investors. NewVest is offering investors an opportunity to participate in a Private Equity Index fund that provides passive exposure to private markets – in much the same way that ETFs and Index Funds provide passive exposure to public markets.

NewVest has chosen to partner with Jerusalem-based OurCrowd to provide private investors with access at a much lower investment minimum.

“Over the past two decades, private equity has yielded returns as much as three times higher than public markets,” Talmor-Gera told the OurCrowd Global Investor Summit in Jerusalem in February.

“Over the same time period, my partners and I also observed two fundamental, large-scale trends in the financial markets: there has been a significant growth in capital allocated by investors to private equity and other private markets asset classes and, at the same time, passive investing strategies in public markets have gained broad acceptance,” Talmor-Gera said.

Passive indexes and exchange-traded funds (ETFs) now represent core holdings for institutional and individual investors alike, he said.

“In public markets, passive has already proven its ability to outperform active management with a lower cost and higher efficiency,” he said.

“Bringing passive index investing to the private markets is the next logical – and long overdue – step in the evolution of private markets. Now, with NewVest, for the first time, investors have an opportunity to passively invest in private equity and other private markets asset classes with the potential for great returns with lower risk, lower volatility, lower cost and better alignment,” he added.

Research has shown that pooled returns across private market asset classes have historically performed well on both an absolute and relative basis as compared to both single-fund and fund-of-fund returns, according to Burgiss Private Equity Benchmarks.

NewVest’s Private Equity 50 Index Fund will allocate capital to the flagship funds of some of the largest and the most successful PE investment firms, including Bain Capital, Blackstone, TPG, Insight, Clearlake and WCAS. Individual investors, who previously were unable to access these opportunities, will now be able to invest with these managers and many others in a diversified and streamlined manner through the OurCrowd NewVest PE 50 vehicle with a minimum commitment of only $100,000.

“Warren Buffett said a low-cost index fund is the most sensible equity investment for the majority of investors,” Talmor-Gera said. “Now OurCrowd, together with NewVest, has a better, easier way for all investors to allocate to private equity.”

The current period of market dislocation and falling valuations presents an “amazing” opportunity for investors, Talmor-Gera told correspondent Emma Walden of SuperReturn International 2022 in June.

“This is an attractive time to be investing in private markets,” he said. There are going to be some great opportunities to buy at more reasonable prices.”

The OC 50 PE Index Fund Powered by NewVest is now available to accredited investors on the OurCrowd platform. For more information, click HERE.

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