With a continued trend of wealth managers focusing on private market investments, their clients are receiving superior returns in compensation for lower liquidity. Private Markets remains the stand out choice for active investing. Across all asset classes, private markets have grown to around five times the level they were at back in 2007. Over the same period, public markets have seen two times growth. As the global economy battles interest rate rises, and staggering levels of inflation that have not been seen for 40 years. Investors will be searching for ways to make their investments and income keep pace. With a number of retail focussed platforms, the increase in wealth capital as well as the contained drive from institutional investors to allocate further capital towards private markets. The shift continues. Although fund raising has seen record years since 2019, this certainly feels like the start for Infrastructure & Real Estate funds..
There has been a rising trend of wealth managers focusing on private market investments, capturing superior returns in compensation for lower liquidity. Private equity provided a pooled IRR of 27 per cent last year, according to McKinsey’s Private Markets Annual Review. With this level of performance, especially in what is now a relatively high inflationary environment, it is little wonder that there is rising interest in alternative assets.