I (28M) am considering putting $40k into a semi-liquid private equity fund. It has an 18-month lock-up period, then allows 5% redemptions quarterly. The fees are 2% annually + 12.5% performance fee.
My total net worth is around $150k, $60k of that is in cash, and the rest is in stocks and other diversified investments. I make around $6k/month and live well below my means.
I’m looking at this for potential long-term growth and diversification, but I’m aware the fees are high and the money will be locked up for a while. I haven’t done any private investments before, so I’d love to hear your thoughts.
Anyone here invested in something like this? Does this sound reasonable given my situation?