Exploring the Potential of Private Equity

Many investors – institutional and retail alike – deal with the complexities of investing the same way: by sticking to the most familiar or comfortable path. On the surface, that seems like a wise decision, one that avoids taking unnecessary risks with scarce financial resources. But, when we look deeper, we realize that every investment option – regardless of how “safe” or “risky” it may first appear – possesses certain qualities that could make it attractive under the right set of circumstances.

Among the investment options available to institutions, private equity might be the least understood. Thanks to the media, private equity firms have an aura of mystery and glamour that makes many investors keep their distance. This reaction is particularly true for Catholic institutional investors. Over the years we have visited with hundreds of Catholic organizations regarding their investment strategies and, with the exception of large dioceses and higher education, very few have significant portfolio dollars allocated to private equity. Some have investigated the asset class but have not had the investment committee expertise or market access to take the next steps.

At Catholic Investment Services, we strive to fill that gap in expertise and access by seeking out partnerships and networks that can bring private equity opportunities to our clients. We are proud of this “frontier work,” which we pursue with the intent of building our clients’ financial resiliency while ensuring that their investments stay aligned with their Catholic beliefs.

Leaders of Catholic organizations frequently ask us for the basic facts about private equity, and how it might potentially benefit them and their missions. Here are some of those basics, which we’ve tried to explain as clearly as possible. We hope you find this guide useful.

For a copy of the full version of Exploring the Potential of Private Equity, please email: info@catholicinvest.org