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Coutts, the centuries-old bank to Britain’s elite, is in talks to offer Ares and Apollo funds to its customers, as wealth managers rush to capitalise on the glut of investment by rich individuals into private markets.
The bank to King Charles is working on plans to allow wealthy clients to invest in two so-called evergreen funds managed by the US private capital firms, according to two people familiar with the matter.
NatWest-owned Coutts has also held talks with KKR, the people said, although one added that the bank has not yet signed agreements with any of the firms.
The move would be Coutts’ first private markets offering, as a growing herd of private banks and wealth managers hurry to capitalise on a flood of new products that alternative asset managers are launching to attract a new class of customer.
Private markets groups have recently opened dozens of funds designed to suit the needs of individual investors, as the flow of cash available to the sector from its traditional institutional backers has slowed.
“Coutts is committed to providing innovative investment solutions to its high net-worth clients,” said Jan-Marc Fergg, head of investment products and solutions at Coutts, adding that the bank would provide access to the products of “leading” private markets firms to customers who get investment advice from Coutts.
Evergreen funds tend to have no end date and allow for regular deposits, often monthly, whereas withdrawals are usually every few months. Traditionally private markets firms have sold closed-end funds to institutions such as pension plans and endowments.
Coutts was considering offering Apollo’s European evergreen vehicle that offers exposure to a range of the private capital group’s deals including private equity, debt and real assets and Ares’ European evergreen fund focused on direct lending, one of the people said.
The private markets sector and the intermediaries now offering their products say they are democratising access to alternative assets that can earn individuals higher returns for their long-term savings.
But some wealth managers and private banks privately suggest that their industry is rushing into such products in part because of the fees they can charge compared with mutual funds investing in listed stocks.
There have also been concerns over the suitability of private markets funds for some individuals, given that they are less liquid — harder to sell — than public markets, while valuing unlisted assets is often a more opaque process.
By the middle of last year, more than €88bn had been invested in evergreen funds in Europe alone, over double the amount in early 2024, according to consultants Novantigo.
Coutts’s recent investment outlook for 2026 said that private equity and private credit should not be viewed as replacements for traditional investing but as complementary parts of a well-structured portfolio.
Apollo, Ares, and KKR declined to comment.