Probing Everest Wealth

UNPACKING: TAKING CLOSER LOOK AT ITS PRIVATE EQUITY PROMISE

- Ryk van Niekerk

Few investment products allow individual investors to invest directly in private equity funds.

These funds typically invest in small and emerging private companies often in the early stages of development that require substantial cash and capital to grow.

These characteristics make private equity an unusual candidate for consistent cash returns, as profits are generally only realised after several years when the private equity firm sells its shareholding in what it hopes to be a larger, more valuable company.

A few months ago, Moneyweb received several requests from its community to evaluate the investment risk profile of Everest Wealth, one of the country's most prominent retail-focused private equity investment firms.

The concerns are mainly related to the investment risk profile of Everest Wealth investment products' attractive and stable returns.

Everest Wealth rates its portfolios as "seven out of 10" in terms of risk, which may appear conservative compared to typical multi-asset balanced unit trusts.

Moneyweb initiated an analysis into the risk profile of Everest Wealth's investment products and the ability of private equity investments to generate the cash needed to pay stable and consistent returns to investors.

Context

It is critical to note that Moneyweb is unaware of any investors claiming they haven't been paid in accordance with the provisions of the products they invested in.