What are the risks associated with the private markets investment?
Investing in private companies carries certain risks, including:
- Equity Risk: Like any equity investment, there is a possibility that the valuation of the company may fall, leading to capital loss.
- Liquidity Risk: Unlike public stocks, private investments are not easily tradable. There may be a lock-in period, and secondary market liquidity is limited or unavailable.
That said, the investment is made through a Delaware Series LLC SPV, which is a bankruptcy-remote structure, meaning the assets in the SPV are insulated from the financial standing of Vested or its partners.