September 7, 2023 | less than a minute read

Private Markets – a Viable Asset Class for High Net Worth and Affluent Investors?

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Ryan Killingback

Director

Get in touch

Ryan Killingback

Director

In the past, Private Markets were primarily accessible to larger institutional investors. However, they have now evolved into a prominent component of the portfolios of Ultra High Net Worth (UHNW) individuals and Family Offices. As demand for Private Markets grows and the availability of more liquid assets increases, many of the leading Private Market houses are building focused wealth distribution businesses. The most recent to enter this segment is Macquarie Asset Management, a process which was run by AMC resulting in the hire of Henry Middleton. We continue to support our clients in their aspirations to enter the wealth market. With some firms building large product, sales and client servicing teams, whilst others are taking a more cautious approach. What is obvious is that the pools of capital continue to expand, and private market investors are finding ways to take advantage.

'Historically an option reserved for only the larger institutional investors, Private Markets in recent times have become a well-established part of the Ultra High Net Worth (UHNW) and Family Office portfolio. With increasing demand and a more readily available and more liquid supply, can Private Markets become a viable asset class for High Net Worth (HNW) and Affluent investors? Current high levels of uncertainty and volatility may be creating a challenging market environment generally, but these market dynamics are only further contributing to the growth of Private Markets – investors wanting to look through the uncertainty to secure longer term returns are looking to private markets to help off-set the short-term volatility. However, with high minimum investments, a lack of liquidity and a limiting regulatory environment, it is not straightforward for the HNW and Affluent investors to access.'