I'm 55 now and have been a mutual fund investor. Lately, there has been a lot of noise about private equity. Can you please tell me the pluses and minuses of it? Also, would you suggest investing in it?
Private equity is not an alternative for an individual investor rather for an institutional investor. In private equity, some large investors pool their money and try to buy a controlling interest in a company to make changes within the company, its management or even, change the complexion of the company, radically. So, they're large investors who get into managing a company in a more affirmative and involved way. And there are no avenues for individual investors to actually put their money in private equity.