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Coach
Are you an accredited investor?
Do you have access to private deals in your network that others wouldn’t have access to? If so, I’d say it’s not a bad idea to dabble with 10% to 15% of your investable assets. If not and you’re just investing in other people’s funds, I’d say it isn’t worth your time.
Private equity / hedge funds / alternative investments are largely lottery tickets. Angel investors typically invest in 50 to 100 projects in hopes that 3 to 5 end up positive and one has outsized returns that makes it worth it. A 2x to 5x return isn’t exciting to most venture capital or hedge funds. A 50x or 100x is what they’re chasing. Hopefully that gives you a sense of the risk profile of these types of investments.
I have money in private equity, private credit and private placement . Has worked out great for me so far.
And are the k-1s and having to do capital calls not annoying?