If you are interested in investing in private companies, startups, and other early investments, and you are not an accredited investor, you have some options. Usual to invest in private deals, you have to be what is called "accredited", which means you have a net worth or $1 million or annual income of $200 thousand. If you are not accredited, you can invest in these companies through a private equity company.
Private equity firms are publicly traded stocks and many of them pay very high dividends. There are over 50 private equity stocks to choose from according to the list at WallStreetNewsNetwork.com, and over ten of which have yields in excess of 10%.
Prospect Capital (PSEC) is a private equity and business development company that specializes in middle market, mature, mezzanine finance, later stage, emerging growth, buyouts, recapitalizations, turnaround, and other private companies. The stock trades at nine times earnings and yields a healthy 12%. It is one of the few private equity stocks that pays out dividends monthly versus quarterly.
KCAP Financial (KCAP) specializes in mid market, buyouts, and mezzanine investments of private companies. The stock has a price to earnings ratio of 14 and a very high yield of over 15%.
BlackRock Kelso Capital (BKCC) specializes in middle market company investments. The E is a favorable 5.4 and the yield is 10.3%.
PennantPark Investment (PNNT) specializes in direct and mezzanine investments in mid market companies. The stock trades at 14 times earnings and yields 11.9%.
THL Credit (TCRD) invests in debt and equity of middle market companies. The stock has a PE of 11, and pays a dividend rate of 11.6%.
Now is your opportunity to jump on the bandwagon with the wealthy investors, by getting into the private equity market. Check out the list of private equity stocks at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.