Private Equity Publicly Available Through an ETF
ProShares, a premier provider of alternative ETFs, today announced the
launch of ProShares Global Listed Private Equity ETF (BATS: PEX). PEX is
the first globally diversified ETF focused on companies that invest
primarily in private enterprises.
“Private equity has long been a staple of institutional and
high-net-worth individuals’ portfolios; for other investors, it’s been
difficult to access,” said Michael L. Sapir, Chairman and CEO of
ProShare Advisors LLC, ProShares' investment advisor. “PEX offers access
to global private equity with the liquidity, transparency and cost
effectiveness of an ETF.”
About Listed Private Equity
Private equity investment strategies typically aim to generate return by
identifying private enterprises with potential and providing them with
long-term capital to expand, introduce new products or restructure.
Private equity investing traditionally has been available through
limited partnerships, which can have high minimums and other
restrictions. “Listed private equity” refers to publicly traded
companies that invest capital in privately held enterprises. PEX focuses
on direct listed private equity—companies that invest directly in
private enterprises.
About the LPX Direct Listed Private Equity Index
PEX tracks the LPX Direct Listed Private Equity Index, a
portfolio of up to 30 listed private equity companies worldwide whose
primary business is direct investments in private equity. The index
methodology generally defines direct private equity investments as
investments in the equity, mezzanine or debt facility of a private
company. It excludes companies whose primary business is private equity
fund management. The index was developed by LPX Group, a leading
provider of listed private equity indexes that is actively involved in
private equity research.
About ProShares
Offering the nation's largest lineup of alternative ETFs, ProShares
helps investors to go beyond the limitations of conventional investing
and face today’s market challenges. Each ProShares ETF provides access
to an alternative investment strategy delivered with the liquidity,
transparency and cost effectiveness of an ETF. ProShares' lineup of 140
ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged
and inverse), and Inflation and Volatility ETFs.
ProShares has the largest lineup of alternative ETFs in the United
States according to Financial Research Corporation ("FRC"), based on
analysis of all the known alternative ETF providers (as defined by FRC)
by their number of funds and assets (as of 3/31/2012).
Investing involves risk, including the possible loss of principal. ProShares
are non-diversified and each entails certain risks, which may include
imperfect benchmark correlation and market price variance that can
increase volatility and decrease performance. Please see the summary and
full prospectuses for a more complete description of risks. There is
no guarantee any ProShares ETF will achieve its investment objective.
Investments in smaller companies typically exhibit higher volatility.
International investments may also involve risk from unfavorable
fluctuations in currency values, differences in generally accepted
accounting principles, and from economic or political instability.
There are risks in investing in listed private equity companies (LPEs),
which encompass business development companies (BDCs) and other
financial institutions or vehicles whose principal business is to invest
in and provide financing to privately held companies. Little public
information may exist for private or thinly traded companies, and
investors may not be able to make fully informed investment decisions.
Private equity securities carry risks related to unclear ownership,
market access and market opaqueness. BDCs are subject to the Investment
Company Act of 1940 but are exempt from many of its regulatory
constraints. The fund is subject to risks faced by BDCs to the same
extent as its index is so concentrated. A significant portion of the
index is composed of BDCs or other investment companies. The fund may
not acquire greater than 3% of the total outstanding shares of such
companies. As a result, the fund’s ability to purchase certain
securities in the proportions represented in the index could be
inhibited. The fund may be required to use sampling techniques in these
circumstances, which could increase correlation risk. For more on the
fund, LPEs, BDCs, correlation and other risks, please read the
prospectus.
Carefully consider the investment objectives, risks, charges and
expenses of ProShares before investing. This and other information can
be found in their summary and full prospectuses. Obtain them from your
financial advisor or broker/dealer representative or by visiting
ProShares.com.
"LPX® Direct Listed Private Equity Index" and "LPX®" are registered
trademarks of LPX GmbH and have been licensed for use by ProShares.
ProShares have not been passed on by LPX GmbH as to their legality or
suitability. ProShares based on the LPX® Direct Listed Private Equity
Index are not sponsored, endorsed, sold, or promoted by LPX GmbH, and it
makes no representation regarding the advisability of investing in
ProShares. THIS ENTITY AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR
NO LIABILITY WITH RESPECT TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the funds' advisor or sponsor.
