Private Equity is an alternative asset class that aims to acquire or invest in companies not listed on public exchanges. This venture is done by experienced teams, selecting companies whose valuation will rise, allowing them to profit from any future increase on their initial investment.

While Private Equity funds often require a high capital allocation and long-term commitment from the investor, various private equity managers have exchange-listed stocks, which offer indirect exposure to this asset class. The higher the profits for investors holding Private Equity Funds, the higher performance fees the fund manager will charge, increasing the company’s profitability.

eToro’s Private-Equity Smart Portfolio allocates in stocks, based on eToro’s asset universe, of global Private Equity Managers and Companies that invest in privately-held companies as part of their business model.

The minimum investment amount for this portfolio is $500.