Many private asset firms have recently entered into the Private Wealth arena. Led largely by the motivation to diverse their investor base, as institutional investors and asset managers plan to reduce their exposure over the coming year. The private wealth channel is more bullish than other investors on sectors such as financials, energy & infrastructure and fund strategies such as distressed/ turnaround and secondaries. Having the investment expertise and product suite is key, as not all private funds are set-up to receive this capital. Over the coming years, fund managers are preparing their investment vehicles to closer match their private wealth client demands.
This is how fund managers are preparing for the next leap in private wealth: matching their offering more closely to the needs of their individual investors. The next trend is expected to be customised mandates where private investors can allocate to a GP across a number of strategies, for example on a defensive or dynamic basis. According to Moonfare, illiquidity, fees and the long-term investment horizon of private equity are the biggest hurdles to new private wealth allocations. But perhaps it’s actually private wealth’s investment priorities, rather than flows or allocations, that are faster moving. Institutional investors have taken the lead in sustainability, particularly in Europe, but in the Private Equity Wire survey, private wealth respondents ranked ESG as a much greater priority – and more than liquidity, fees or performances.
https://www.privateequitywire.co.uk/2023/01/11/319039/gps-look-past-fast-money-private-wealth
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