Private market investments in high demand by private clients – wealth managers need to make access easier, survey shows.
A survey published by Mercer and Titanbay end 2022 has revealed that wealthy individuals in Switzerland see private market investments as an important part of their investment strategy. While around 30% are already invested, 40% of those not yet invested would be interested if private market investments were more easily accessible.
The report surveyed over 100 wealthy individuals in Switzerland with liquid assets of between 500,000 and 5m CHF each, and found that private equity is the most sought-after asset class, representing 84% of portfolios. Infrastructure and private debt are hardly represented, while real estate features in the portfolios of 33% of the survey respondents already invested in private markets.
However, the report also shows that there are a number of barriers preventing wealthy individuals from making private market investments, including a lack of knowledge (47%) and higher expected risk when compared to other types of investment (43%). Higher cost (17%), difficulty in finding suitable offers (17%), long lock-up periods (12%), and minimum investment amounts being too high (11%) are other barriers mentioned.
Pangea Advisory can help investors to guide them to better access private markets. Our team of experts has a deep understanding of the private markets landscape and can provide tailored advice to our clients to ensure they make informed investment decisions.
Here are some ways in which Pangea Advisory can help:
Providing education: we can provide educational resources to help clients better understand the private markets landscape, the potential risks and rewards, and the different types of investments available.
Identifying suitable offers: Pangea Advisory can help clients find suitable private market investment offers that match their investment goals and risk tolerance.
Accessing private markets: we have the expertise to help clients navigate the complex process of accessing private markets, ensuring they meet the minimum investment amounts and are able to lock in their investments for the desired period.
Providing ongoing support: Pangea Advisory can provide ongoing support to clients throughout the investment process, from due diligence to portfolio management.
Private market investments are becoming increasingly popular among wealthy individuals, but there are still barriers preventing many from making such investments. Wealth managers and private banks need to make access easier for their clients, particularly through the use of digital solutions.
At Pangea Advisory, we have the expertise to help clients navigate the complex private markets landscape, providing tailored advice and support throughout the investment process. Whether clients are looking to diversify their portfolios, generate higher returns, or achieve a greater impact with their investments, our team of experts can help them make informed investment decisions.