Including Venture Capital in Generational Investing
February 25, 2020 | Scott Murphy
The venture asset class can be a key component of an investor’s wealth planning strategy. In a recent article, Cambridge Associates (CA) explains why venture capital can be an attractive option for investors aiming to create sustained wealth and engage future generations in the wealth planning process.
According to CA, venture capital’s high potential for greater returns than public market investments can position portfolios to generate greater, sustained wealth for future generations. Additionally, the disruptive and innovative ideas that startups bring into the marketplace presents an opportunity to pursue a lucrative form of impact investing – doing good while doing well.
Venture capital can be an appropriate asset class for accredited investors to consider as they build a diversified portfolio. Returns from private investments are typically unaffected by the public market and have historically outperformed equivalent public indexes. Read this additional white paper from AVG based on data from global investment firm Cambridge Associates (CA) to learn more.