Private Equity
Private equity, explained.
How this part of the private markets works, and where our role begins and ends.
Private equity is capital invested in companies that are not listed on a public exchange. This page is general information about that market and about the work Jura Capital does in it. It is not an offer of an investment and it is not investment advice.
- Companies not traded on an exchange
- Unlisted
- Typical holding periods
- Multi-year
- Capital is generally committed
- Illiquid
Market context
Companies are staying private for longer.
More of the corporate lifecycle now happens away from public exchanges than it did twenty years ago. That is a structural change in how companies are financed, and it is one of the reasons private markets attract attention. It does not make them better or safer than public markets.
- Time between founding and listing has lengthened over two decades
- Reporting is periodic and contractual rather than continuous
- Valuations are estimated rather than set by a live market
Characteristics
What Distinguishes Private Equity
Different, rather than better, than listed markets.
Private equity behaves differently from public equity. It is not priced daily, it is held for long periods, and outcomes often depend on a small number of companies. Those characteristics cut both ways: they are why the market can behave differently from listed equities, and they are also the source of its risks.
Unlisted companies
Businesses at a range of stages that are not traded on an exchange.
Long time horizons
Capital is generally committed for years rather than months.
Low correlation, not low risk
Prices move differently from listed markets, and value can be lost in full.
Company-level outcomes
Results depend on individual businesses rather than an index.
Who takes part
The People Active in This Market
Private equity involves a relatively small set of participants.
- 01
Founders and operators
Management teams raising capital to grow their businesses.
- 02
Independent investors
Individuals and firms that back companies on a deal-by-deal basis.
- 03
Family offices
Long-horizon allocators investing across generations.
- 04
Specialist firms
Sector-focused managers with their own research and relationships.
Context
Why Private Markets Are Discussed More Often
Interest in private markets has grown, and so has commentary about them. The points below are observations about the market rather than reasons to invest.
- A larger share of company growth now happens before a public listing
- Pricing is periodic, which changes how portfolios behave and how they are reported
- Access is restricted by rules that govern how such offerings may be communicated
- Illiquidity means capital cannot usually be withdrawn on demand
What we look at
Focused, Disciplined, Curious
The questions we ask when we read about a private company.
Jura Capital spends most of its time reading and asking questions. When we look at a private company, these are the things we try to understand:
The track record of the people running it
How and when capital might eventually be returned
Where the business sits in its industry
Whether the interests of the parties are aligned
Whether the structure and the costs are clear
Our Role
Introducer, Not Adviser
A narrow role, stated plainly.
Jura Capital does not advise, manage or pool capital, and does not hold client money. We are not a fund or an asset manager. Where we make an introduction, the parties deal with each other directly and any documentation comes from them. Decisions, and the professional advice behind them, remain with the investor.
Restrictions
Who These Markets Are Open To
Access is restricted by the rules that apply to unlisted offerings.
Unlisted offerings may generally only be communicated to defined categories of investor. Those categories are set by regulation and by the people running the offering, not by Jura Capital, and nothing is offered through this website.
High-Net-Worth Individuals
A category defined in UK regulation.
Sophisticated Investors
A category defined in UK regulation, based on relevant experience.
Frequently Asked Questions
General information about private equity and about how our business works.
Private Equity
Questions About This Market?
If you would like to understand more about how private equity works, or about how our business operates, our team is happy to talk. No investments are offered on this website.