Direct investments are investments in tangible assets or companies with the aim of financing their development in the medium or long term. Such opportunities are meant for qualified investors and are the opposite of indirect investments, which are in listed shares, equities or bonds. Direct investment allows for portfolio diversification beyond traditional instruments.
Depending on the opportunities available, a direct investment on the private markets can generate recurring cash flows.
However, direct investments are more illiquid than most other financial assets, as the money invested is generally blocked for the medium to long term (up to ten years). Direct investment opportunities must therefore be considered an entrepreneurial venture, and require methodical assessment of the risks they entail.UBP’s Direct Investments Group