This piece has been edited for an incorrect email address originally posted earlier on January 12
LEHI, UT/ACCESSWIRE/January 12, 2022/ What can be done to help the American workforce prepare for retirement? With more than 52% of them feeling behind in their savings, it is estimated that there is a $4 trillion gap between what American workers need for their golden years and what they actually have in their bank accounts. Although the ground cannot be caught up quickly, there are of course solid options for those who start their retirement savings late. Traditionally, employees have relied on their 401k, whose average rate of return over the past three years has been between 9.7 and 15.1 percent, and Roth IRAs, which typically yield 7 to 10 percent. . Both remain viable alternatives for investors, but private equity firms such as Hedgehog Investments, co-founded by Matt Bates and Josh Bishop, offer a third choice: the ability to lend their money to business owners who are rebuilding their credit. , restructure their debt and expand their businesses. The option, according to Hedgehog Investments, has the potential to provide returns of up to 20% to investors and help companies receive the capital they need.
The Capital Problem Facing Some U.S. Companies
Hedgehog Investments says that in 2022, businesses’ need for capital will be at an all-time high due to the economic fallout from the pandemic and global recession. A study published in the Wall Street Journal found that while around 600,000 businesses fail each year in the United States, the pandemic has resulted in an additional 200,000 closures, which does not include those that are still open but struggling. Additionally, a 2021 survey by Lake Research Partners for Small Business Majority said that approximately 40% of small business owners have been unable to obtain capital. Without this, more businesses then face the threat of permanent closures and layoffs of their employees.
Private equity funds: the potential to solve both problems
Hedgehog Investments believes that one way for more people to save for retirement while helping businesses recover is for investors to spend or put their money in insured trust accounts with private equity firms that lend it out. then to businesses.
“He has the ability to kill two birds with one stone, as the saying goes,” say Matt and Josh. “Equity funds are not meant to get rich overnight, obviously – nothing is. However, they have the potential to provide higher rates of return than other traditional investment options and serve an even greater purpose in helping businesses rebuild.”
How Hedgehog Investments Helps Partners and Companies
The company explains that the model it uses is designed to bring the highest possible returns to its partners and to support companies that they believe will succeed in the process.
“We work with Princeton Law Firm, a firm with over 25 years of experience in this market, to carefully assess companies that are ready to take their business to the next level,” says Hedgehog Investments. “The money is being used to pay down their debt ratios so they can get long-term financing.”
Investors, the other side of the equation, receive one-year contracts that insure both principal and interest. Once the contract has expired, the individual’s interest is due.
About Hedgehog Investments Holdings
Hedgehog and its co-founders have over 25 years of experience building corporate credit, small business capital, and public and private acquisitions and investments. They created Hedgehog Investments because they believed that others deserved to have the same returns on their investments as they did. Hedgehog and its staff believe it should be easier to find high returns on investment and that financial partnerships should involve strong relationships and genuine trust. “We are particularly excited about our services as we believe that in 2022 we and our partners will be able to provide $100 million of growth capital to small businesses,” they state.
The outlook for companies and future retirees
Private equity firms have the potential to ultimately help solve two problems facing our country today: a workforce that is unprepared for retirement and companies that lack the capital they need to operate. By thinking outside the box, Hedgehog Investments may have the model we need to solve both problems more successfully.
For more information on Hedgehog Investments, please visit their website or contact them at:
E-mail: [email protected]
Phone: (480) 204-8446
THE SOURCE: Hedgehog Investments
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