This is usually characterized by investments in high-risk ventures such as tech startups. Those who believe in the concept and growth potential give their money in anticipation of great returns down the road. However, returns may not be available until 10 years or so down the road. It’s a game of patience for those with deep pockets.
Many private equity investors will use up millions per venture. This is out of reach for most people. If a regular wants to invest with a more reasonable amount, then he should look into ETFs that focus on this type of investment. The downside is that the fees for fund management is generally higher than with index funds and mutual funds.
The upside is that you don’t have to do the hard work of studying every prospect available. If the gamble pays, then you can enjoy massive rewards after making an investment for equity.