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Investing in Private Equity: Find out more about Direct Investing

Definition and explanations

20/4/2024
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Direct investment is a form of investment in which an investor, often a private or institutional investment fund, directly acquires stakes or shares in unlisted companies, with the aim of making a long-term profit. This is a high-risk, high-return form of investment, enabling investors to obtain high returns in return for a substantial investment.

Direct investment has many advantages, as well as little-known risks. Indeed, investors can expect significant returns and long-term benefits, as well as greater control over their investment. However, direct investment entails risks such as liquidity, lack of transparency, market fluctuations, development control and administrative burdens.

In summary, direct investment is an attractive form of investment for investors who seek long-term returns with a high level of risk, but are prepared to take steps to minimize risk and manage their investment.

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