"Successful investing is about managing risk, not avoiding it."
Benjamin Graham
Our private equity investing service offers exclusive access to high-potential opportunities unavailable in public markets.
We carefully select and vet private equity deals, focusing on industries with strong growth prospects. Our team conducts rigorous due diligence to mitigate risks and maximize returns, aligning investments with your financial goals. With our deep network and expertise, we provide access to elite investments, ensuring diversification and upside potential. Fairfield Stern’s disciplined approach to private equity empowers you to build wealth through innovative, high-impact opportunities while maintaining a balanced portfolio.
Elevate Your Wealth with Fairfield Stern
At Fairfield Stern, we believe wealth is more than just numbers—it’s about creating opportunities and building a legacy that reflects your vision. Our private equity (PE) offerings provide high-net-worth clients with exclusive access to investments that can enhance returns and diversify portfolios. Unlike publicly traded stocks, private equity opens doors to unique opportunities, offering the potential for higher rewards and greater control. With a tailored, client-focused approach, we guide you through the world of private equity, helping you achieve your financial goals with confidence and clarity.
Why Choose Private Equity Over Public Stocks?
Private equity involves investing in private companies or taking public firms private, offering distinct advantages over traditional stocks. Here’s why PE stands out:
Higher Return Potential
Private equity often delivers stronger returns than public markets by focusing on high-growth or undervalued companies. PE firms actively improve businesses—through better operations or strategic moves—unlocking significant value. Data from Cambridge Associates (2024) shows PE returns averaging 12-15% annually over a decade, compared to 7-10% for public stocks like those in the S&P 500. This makes PE a powerful tool for growing your wealth.
Diversification Benefits
Unlike stocks, which rise and fall with market trends, private equity is less tied to daily market swings. This lower correlation reduces portfolio risk, providing stability during turbulent times, such as economic slowdowns. By adding PE, you can balance your portfolio and protect against volatility in public markets.
Hands-On Management
PE firms take active roles in the companies they invest in, often reshaping strategies or operations to boost value. This contrasts with public stocks, where you have little influence over management. With Fairfield Stern, you benefit from this hands-on approach, aligning investments with your goals.
Exclusive Opportunities
Private equity offers access to innovative startups, niche industries, or turnaround stories not found on stock exchanges. From cutting-edge tech to sustainable energy, PE lets you invest in exciting sectors. When available, we offer ESG-focused opportunities for clients who value social and environmental impact alongside financial returns.
Long-Term Growth
PE investments typically span 5-10 years, encouraging a patient approach that avoids short-term market noise. This long-term focus, combined with an illiquidity premium (higher returns for less liquid assets), suits clients with substantial assets looking to build lasting wealth.
Stages of Private Equity Investments
Private equity spans different stages, each offering unique opportunities and risks. We help you choose the right fit for your goals:
Venture Capital (Early Stage)
Venture capital funds support startups with big potential, like tech or biotech innovators. These carry higher risk due to unproven models but can deliver exceptional returns. For example, backing a new AI startup could yield significant growth. We select venture capital opportunities for clients seeking high-reward investments.
Growth Equity (Expansion Stage)
Growth equity targets established companies needing capital to grow, such as a retailer expanding online. These firms have steady revenue, lowering risk compared to startups. This stage suits clients balancing growth and stability, and we integrate it into diversified portfolios.
Buyouts (Mature Stage)
Buyouts involve acquiring mature companies to improve operations or prepare for a sale or IPO. For instance, a PE firm might streamline a manufacturer’s supply chain. Buyouts offer moderate risk and strong returns, ideal for clients prioritizing consistency.
Distressed Investments (Special Situations)
Distressed PE focuses on struggling companies, aiming to turn them around through restructuring. While riskier, these can yield high rewards, such as reviving a retailer through e-commerce innovation. We carefully select distressed opportunities for clients open to higher risk.
Why Partner with Fairfield Stern?
At Fairfield Stern, we make private equity approachable and effective, integrating it into your broader wealth strategy:
- Exclusive Access: Our network connects you to top-tier PE funds and direct investments, vetted through rigorous due diligence for quality and alignment with your goals.
- Tailored Strategies: We customize PE allocations to match your risk tolerance and aspirations, balancing illiquid with liquid assets like stocks and bonds for flexibility.
- Tax Efficiency: Our advisors work with your tax professionals to optimize PE structures, such as deferring capital gains, to enhance after-tax returns.
- Expert Guidance: Our team provides ongoing oversight, ensuring your investments perform and adapt to market shifts.
Key Considerations
Private equity offers compelling rewards but requires careful planning:
- Illiquidity: PE investments may be locked in for years, so we ensure your portfolio includes liquid assets for flexibility.
- Risk: Early-stage investments carry higher risks, which we balance with diversified holdings.
- Due Diligence: Our expertise ensures thorough vetting, minimizing risks and aligning investments with your vision.
Invest With Confidence
Private equity is a dynamic way to grow wealth, offering access to opportunities beyond public markets. At Fairfield Stern, we simplify the process, providing personalized guidance to integrate PE into your portfolio. Whether you’re drawn to innovative startups or stable buyouts, our team helps you build a strategy that supports your financial and legacy goals. Contact us today for a conversation to explore how private equity can elevate your wealth with sophistication and purpose.