They are often overlooked, but small- and medium-sized businesses represent a significant segment of the Australian economy, employing 59% of workers, and selling 55% of all goods and services.

With unlisted private equity companies comprising such a major part of the economy, it makes sense that they should form part of an investment portfolio as well, says Quay Partners managing partner, Sam Armstrong.

It is also a way to gain exposure to industries that are not represented in the ASX 200, Armstrong says. “If you look at the stock market, financial services take up 43% of the ASX 200. But what if you want exposure to emerging professiona...