Wed 20 Feb 2008
Released on: February 20, 2008, 2:39 am
Press Release Author: Morley Thompson, Inc.
Industry: Financial
Press Release Summary: “The objective of venture capital is to generate high rates of return over long periods of time. Venture capital offers institutional investors and high-net-worth individualРІР‚в„ўs high returns (historically better than stocks) and strong diversification benefits from very low correlations with other asset classes.
Press Release Body: BEIJING, R.O.C. i-, January 19, 2008,
Bryan Morley, Co-founder and managing director of Morley Thompson, Inc., a well established Venture capital firm explains the process of investing private equity in companies, typically in early stages of development, that are believed to offer significant potential to grow substantially and reward investors accordingly.
“The objective of venture capital is to generate high rates of return over long periods of time. Venture capital offers institutional investors and high-net-worth individualРІР‚в„ўs high returns (historically better than stocks) and strong diversification benefits from very low correlations with other asset classes”.
The major negatives of investing in venture capital can be long time frames, lack of liquidity, and high management fees.
Venture capital firms typically manage multiple funds formed over intervals of several years. Funds are illiquid but as companies in the portfolio go public or are sold, the investors realize their returns.
Funds typically consist of limited partnerships invested in a number of companies. A general rule for the breakdown of returns among venture capital company investments is 40% will be complete losses, 30% will be “living dead,” with the remaining 30% generating substantial returns on the original investment.
The big winners yield 10 or more times the original investment.
Web Site: www.morleythompson.com
Contact Details: PHONE: +81-3458-00920
FAX: +81-3449-65015
CORPORATE OFFICE:
24th Floor
Marunouchi Building,
2-4-1 Marunouchi,
Chiyoda-ku, Tokyo 100-6332 Japan.
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