The short answer

Private equity means investing in companies that aren't listed on a stock exchange, usually through a fund run by a specialist manager who buys businesses, helps them grow and sells them years later. Investors like it for its growth potential, its diversification away from the stock market and the chance to back companies at the stage when much of their value is created. It's generally open to eligible investors — professional, sophisticated or high-net-worth individuals, depending on where you live. You can invest through evergreen funds that offer periodic access, closed-ended funds via feeder vehicles, secondaries funds, listed private equity or co-investments. Platform minimums often start around €50,000–€100,000. It's a long-term investment, best as one part of a wider portfolio. Lawrence will talk you through the routes open to you.

How private equity works

A private equity firm — the "general partner" or GP — raises money from investors — the "limited partners" or LPs — into a fund. The fund then buys stakes in private companies, often taking control. Over the following years, the manager works to make each business more valuable: growing sales, entering new markets, improving operations, making acquisitions and strengthening management. When the time is right, the company is sold — to another company, to another fund, or through a stock market listing — and the proceeds are returned to investors.

A classic fund invests over its first few years, grows and sells its companies over the following years, and returns money as each exit happens. Bain reports that the average holding period for a company is now around seven years. The fund manager is paid a management fee and a share of the profits — usually only once investors have received a minimum return — so the manager's interests are closely aligned with yours.

Why investors want private equity

• Access to growth — many companies now stay private for longer, so much of their growth happens before they ever list.
• Active ownership — managers don't just hold shares; they work directly with companies to improve them.
• Diversification — private companies are a very different set of businesses from those on the stock market.
• A long-term mindset — managers can focus on building value over years rather than quarterly results.
• Aligned incentives — managers earn most of their reward only when investors do well.
• Strong recent results in growth areas — Cambridge Associates' US private equity index returned 8.7% in 2025, with growth equity at 11.9% and US venture capital at 21.1%.

That's why pension funds, endowments and family offices around the world have long held a meaningful share of their portfolios in private markets — and why private wealth is now following them.

The 2025 rebound — and why 2026 looks promising

Bain & Company's Global Private Equity Report 2026 describes a year in which deal and exit value "surged reassuringly":

• Buyout deal value reached US$904 billion, up 44%, with a record average deal size of US$1.2 billion.
• Buyout-backed exits rose 47% to US$717 billion.
• Global dry powder — money committed and ready to invest — stood at around US$1.3 trillion.
• The IPO market reopened, with the US$7.2 billion Medline listing seen as a possible start of stronger listings activity.
• Total private capital raised held steady at around US$1.3 trillion.

With around 32,000 unsold companies worth US$3.8 trillion still held by funds, exits have plenty of room to grow — which matters, because exits are when investors are paid. Bain's verdict: "2026 is shaping up as promising."

Who can invest

Most private equity funds are open only to eligible investors. The exact categories depend on where you live and where the fund or platform is based, but they generally include:

• High-net-worth investors — with significant income or assets.
• Sophisticated investors — with relevant investment experience.
• Professional or accredited investors — as defined in each jurisdiction.

For example, one leading private equity platform, Moonfare, accepts certified high-net-worth and self-certified sophisticated investors in the UK, accredited investors in Singapore and professional investors in the EU. Each fund or platform sets out who it can accept. For expats in Thailand, eligibility usually depends on the platform or fund's own rules and your nationality, residence and wealth. Lawrence will help you understand which routes are open to you.

The main ways in

The routes eligible investors use to access private equity, side by side.

A general guide. Evergreen redemption terms from Moonfare (citing Preqin). Each fund sets out its own terms.

Evergreen funds: the new front door

The biggest change for individual investors has been the rise of evergreen — or semi-liquid — private equity funds. Unlike a classic fund, which you commit to and wait for, an evergreen fund is open-ended: it's already invested in a diversified portfolio of private companies and fund stakes, so your money goes to work straight away. You can usually add money regularly, and the fund offers redemptions monthly or quarterly, typically capped at around 5% of the fund's value per period.

That combination of immediate investment and periodic access has proved popular: evergreen assets reached a record US$350 billion, according to Preqin data cited by Moonfare, driven by demand from private wealth. For many first-time private equity investors, an evergreen fund is the simplest way in. Our guide to private equity fund structures and fees explains the options in detail.

Where to start

Guidance on the routes open to you — and better rates when you fund investments or receive distributions.

How much you need

Minimums vary by route. Investing directly in a classic private equity fund has traditionally required millions. Platforms have brought that down dramatically: Moonfare, for example, says its minimums usually start at €50,000 for portfolio funds and €100,000 for feeder funds, with €25,000 for its secondaries fund, depending on where you live. Evergreen funds can be lower still, and listed private equity can be bought in any amount.

Because private equity is long term, most investors commit only part of their portfolio — and build their allocation over several years, so they're invested across different vintages and managers.

How fees work

Private equity fees are structured to reward managers for performance:

• A management fee — a yearly percentage paid to the manager to run the fund.
• Carried interest — the manager's share of the profits, usually paid only after investors have received a minimum "hurdle" return.
• Platform or feeder fees — if you invest through a platform, it may charge for access and administration.

Because performance fees are paid only when investors make money, the manager has a strong incentive to deliver. Returns are usually quoted after fees, so you can compare funds on what investors actually received. Our guide to private equity fund structures and fees goes into detail.

A long-term investment

Private equity is built for patient investors. Classic funds usually run for ten years or more, investing in their early years and returning money as companies are sold. Bain notes that distributions across the industry have been running at around 14% of net asset value a year, and that companies are held for around seven years on average. Evergreen funds offer more flexibility with periodic redemptions, but they're still long-term investments.

That long horizon is part of the opportunity — managers have time to build real value — and it's why private equity works best for money you won't need for many years. Our guide to private market liquidity and lock-up periods explains how and when money comes back.

The main private equity strategies

Buyout

The largest part of the market: funds buy established, profitable companies, usually taking control, and work to grow and improve them. In 2025, buyout deals were worth US$904 billion worldwide.

Growth equity

Investing in fast-growing companies that need capital to expand, often taking a minority stake. Cambridge Associates' growth equity index returned 11.9% in 2025.

Venture capital

Backing young, high-potential companies, often in technology. Higher risk, with the potential for very high returns — Cambridge Associates' US venture capital index returned 21.1% in 2025.

Secondaries

Buying existing stakes in private equity funds from investors who want to sell. Secondaries can offer mature portfolios, faster distributions and sometimes attractive prices.

Private credit

Lending to private companies rather than owning them, typically producing regular income. It's a fast-growing part of private markets alongside private equity.

How private equity fits your portfolio

Private equity works best as one part of a well-built portfolio. A sensible approach for an eligible investor might combine:

• A cash reserve for living costs and the unexpected.
• Structured notes for defined returns and income — today paying up to 13.56% a year on autocalls and 9.72–9.85% a year on Phoenix notes.
• Listed funds and shares for liquid, long-term growth.
• Private equity for long-term growth from private companies, built up over several years.

Each part does a different job, and together they balance growth, income and access. Our guide to structured notes explains the defined-return side of the picture.

Building your allocation over time

Professional investors rarely put all their private equity money in at once. Instead, they build a programme: committing a similar amount every year or two to new funds. That spreads their investments across different "vintages" — the years funds start investing — so no single year's market conditions decide the outcome. It also means that, after a few years, distributions from older funds start to arrive while newer ones are still investing, creating a natural cycle of money in and money out.

Individual investors can follow the same approach on a smaller scale: an evergreen fund as a core holding, plus a commitment to a closed-ended or secondaries fund every year or two, alongside structured notes and liquid investments. It's a disciplined way to capture the long-term growth of private markets while keeping your overall portfolio balanced.

Private equity for expats in Thailand

For expats in Thailand, private equity is usually accessed through international platforms, funds or advisers, in US dollars or euros. A few points help things go smoothly:

• Check eligibility early — each platform sets its own rules by nationality and residence.
• Think about currency — funds are usually in US dollars or euros, while your life is in baht.
• Consider where you hold it — some investors hold private markets exposure through international accounts or offshore structures. Our guide to offshore investment structures explains the options.
• Plan for tax — get advice on how distributions are treated where you live.

When distributions arrive, a specialist FX provider gets you far more baht than a bank.

What happens after you invest

In a classic closed-ended fund

1. You commit an amount to the fund, often through a platform's feeder vehicle.
2. Capital calls — the manager draws your commitment in stages over the first few years, as it finds companies to buy.
3. Value creation — the manager works with each company to grow it, with regular valuation reports along the way.
4. Distributions — as companies are sold, money is paid back to you, typically in the second half of the fund's life.

Early on, a fund's reported value can dip slightly as fees are paid before investments have had time to grow — the so-called "J-curve" — before rising as companies mature and are sold.

In an evergreen fund

Your money is invested immediately in an existing portfolio. You receive regular valuations, can add more over time, and can request redemptions on the fund's dealing dates, within its limits. It's a smoother experience that many first-time investors prefer.

Why patience pays in private equity

Private equity rewards patience. Cambridge Associates notes that, over periods shorter than ten years, public markets have often kept pace with or beaten US private equity — which is exactly why professional investors treat private equity as a ten-year-plus commitment, built up across several funds and vintages. Over those longer horizons, the managers' work of building better businesses has the time it needs to show through.

That's also why the best approach is steady: commit a sensible share of your portfolio, add to it over several years, and let the strategy work. Lawrence helps clients pace their private markets investing alongside the rest of their plan.

Questions to ask before you invest

1. Am I eligible for this fund or platform where I live?
2. Who is the manager, and what are its previous funds' results after fees?
3. What is the strategy, and how many companies will I own?
4. Is it evergreen or closed-ended, and how do redemptions or distributions work?
5. What are the total fees, including any platform costs?
6. What currency is it in, and how will I fund it?
7. How often will I receive valuations and reports?
8. How does it fit alongside the rest of my portfolio?

How to choose a private equity fund

1. The manager's track record — across several funds and market cycles.
2. The strategy — buyout, growth, venture, secondaries or credit — and whether it suits you.
3. The team — experience, stability and how they add value to companies.
4. The structure — evergreen or closed-ended, and the access terms.
5. Fees — management fee, carried interest, hurdle and platform costs.
6. Diversification — number of companies, sectors and regions.
7. Reporting — how often you'll receive valuations and updates.
8. Currency and minimum — and how it fits your wider plan.

Our guide to valuation and due diligence in private investments covers how professionals assess managers.

Top tips for private equity investors

• Think long term — invest money you won't need for many years.
• Build gradually across several years, managers and strategies.
• Start simple — an evergreen fund can be an easy first step.
• Choose experienced managers with long track records.
• Understand the fees and compare returns after fees.
• Keep a cash reserve and liquid investments alongside.
• Plan your currency for commitments and distributions.
• Invest through someone you trust — never from a cold call.

Three real-world examples

These are illustrations, not real clients.

Mark, 54 — a first step

Mark, a high-net-worth investor living in Bangkok, wanted exposure to private companies. He started with an evergreen private equity fund, so his money was invested straight away, and adds to it each year.

Catherine, 61 — balancing growth and income

Catherine combined Phoenix structured notes for quarterly income with a modest private equity allocation for long-term growth, keeping a cash reserve in baht for living costs.

Paul and Sue — building over time

Paul and Sue commit to a different private equity fund every couple of years, building a portfolio across managers and vintages, with distributions converted to baht through Vita Capital.

Your private equity checklist

1. Check whether you're eligible.
2. Decide how much to allocate, for the long term.
3. Choose your route — evergreen, feeder, secondaries or listed.
4. Pick experienced managers and check their track records.
5. Understand the fees and access terms.
6. Plan your currency and tax.
7. Keep a cash reserve alongside.
8. Talk to Lawrence about the routes open to you.

Investing safely online

Only invest through established platforms, managers and advisers you trust, confirm any bank details directly before sending money, and use a private, protected connection when you log in to investment platforms on hotel, café or condo Wi-Fi.

How we researched this guide

This guide draws on Bain & Company's Global Private Equity Report 2026; Cambridge Associates' US PE/VC Benchmark Commentary for calendar year 2025 (July 2026); and Moonfare's guides to semi-liquid funds (citing Preqin) and to investing on its platform. Checked 14 October 2026. Private equity is a long-term investment, usually available only to eligible investors; values can fall as well as rise and access to your money is limited. This guide is general information, not personal financial advice.