If you’ve got $50,000 to invest, the Carlyle Group has lowered their minimum for private placements. If you haven’t heard of the Carlyle group, they are the third largest private equity company in the world. Their business model is basically buying defense and real estate companies, fixing them up and either selling them or owning them outright. They have holdings all throughout the globe and are extremely well connected. As a result, their business is hugely profitable with a three-year annualized change of 41.57% in their operating profit margin.
So it might be worth checking out.
From the Washington Post:
The Carlyle Group is lowering its threshold for new investors to $50,000 in an attempt to broaden its customer base and tap an investment pool that reaches into the trillions.
Until now, Carlyle’s client base has been limited to multimillion-dollar investments from wealthy individuals, foundations, foreign sovereign wealth funds and giant pensions.
The minimums for those entities has started at about $5 million. The new model will include investors who can put up $50,000, a pool that one analyst called “the holy grail” for investment firms.
Tim Loughran, finance professor at the University of Notre Dame, said the move by Carlyle and other private equity firms is an attempt to diversify their sources of cash.
“They are trying to get more money than ever,” Loughran said. “And this is just another way of getting money. Let’s see if it works. . . . There’s a lot more people with $50,000 than with $20 million.”
More at the Washington Post.