"Individual investors account for half of all wealth globally". It is no surprise, therefore, that Private Equity companies are starting to rush towards this untapped potential. Similarly, wealthy individuals have been drawn to the Private Markets as a diversification option and a great alternative to public equity and debt, which have experienced volatility in recent times.
Some of the biggest Private Equity managers have been pioneering the exposure to this novel client base with many more expected to follow suit. Thanks to easing regulations, innovative fund structures, and new FinTech platforms, Private Markets investments are becoming more accessible to individual investors.
Yet, some of the biggest brands in the private space have a long way to go with brand building as a great deal of high-net-worth and mass affluent individuals won't be familiar with Private Equity players due to prior boundaries on entering the space. A large amount of work will need to be done for both the investors and within the investment management firms. The investors will need to be educated around the firms, funds and wider strategies, whilst the investment managers will need to innovate about how they distribute to a new client base in order to bridge this knowledge gap. However, thanks to the largest Private Equity players making moves into this client channel, expect to hear a lot more noise as the rest of the industry follows suit.