Crowdfunding, grants, and various other financial investment options have been around since the inception of trade and business. However, a new investing option is set to become the next big thing: micro private equity (Micro PE).
Daniel Javor is a micro private equity investor who is one of the pioneers of micro PE and is paving the path to make it a successful movement in the finance sector. He has had a rather exciting journey. Starting as a digital marketer, today, he is a thriving online investor with an 8-figure portfolio. He also runs many location-independent businesses that generate long-term, passive income, giving him the flexibility to work from any corner of the world.
If you look at his Instagram or Facebook, you will see that he indeed is living the life the rest of us can only dream of. With his decade-long expertise in the industry and investment acumen, he has risen to a reputable position in the micro private equity investment industry.
Daniel explains that the most significant benefit of micro private equity is that it allows small investors who are usually unable to participate in traditional PE investments to invest and get huge returns. These assets are typically under $5million, which helps investors gain larger returns while still having control over their assets. Hence they are way too small for big institutional buyers to invest in and out of the reach of traditional retail investors. Micro PE investors hit the sweet spot in between, which no one is catering to.
Another reason large-scale traditional private equities have no interest in these small businesses is that they typically lack systems and sophisticated management. The lack of competition holds the door wide open to investors like Daniel.
He prefers micro PEs over traditional investing because he gets to play an active role in the business. In traditional investments like stocks, you are only an observer and have no control over the company’s success or losses. The added advantage of an active role in company growth makes micro PEs much safer and more profitable.
Being one of the micro private equity movement pioneers, Daniel predicts that it will soon catch up and be the next big thing in the investment industry.
The unprecedented technological advancement in the last decade has made managing multiple businesses easier. He feels that reduced managerial and administrative hassle and costs to small businesses will increase their valuation. Now that micro PEs and investors can use the internet and cutting-edge software to manage their work efficiently, they will step forward to diversify their investments. This will lead to an increase in the valuation of small businesses in the future. He also predicts that the increased value of small-scale businesses will also be driven by large-scale aggregators who will consolidate multiple small businesses into one fund, just as it is happening for Thrasio and the Razor Group.
The major credit for what is in store for Micro PEs goes to investors like Daniel Javor. They have identified its potential and are instrumental in popularizing this concept, helping countless small investors and businesses.