Publicly listed markets are losing out on the most compelling investments and the trend is set to increase, new research from Wealth Club, the UK’s largest non-advisory investment service for tax-efficient and private market investments shows.
Almost all (97%) private markets fund managers questioned agree that increases in companies remaining privately-held and a rise in lending outside the traditional banking sector mean that many of the most compelling investments are no longer available on publicly listed markets.
Its study with UK based private market fund managers working for organisations managing assets of around £2.365 trillion across private equity, private credit, infrastructure and real estate found they expect the trend to increase over the next five years.
Almost half (46%) expect the switch away from publicly-listed markets will increase dramatically while another 39% predict a slight increase over the period.
The study for Wealth Club, which launched the UK’s first investment fund supermarket for semi-liquid private markets funds targeting sophisticated individual investors last November, shows they expect the percentage of companies globally with revenues of more than $100 million which are private to increase over the next three years.
Currently around 88% of the 159,000 firms globally with revenues of more than $100 million are privately-held. The study found nearly nine out of 10 (87%) of private market fund managers expect that percentage to increase. Around 26% predict a dramatic increase.
Wealth Club has negotiated access to private market funds from some of the world’s best-known specialist managers. Currently there are 13 funds from ten managers on the platform with minimum investment amounts from £10,000.
Alex Davies, founder and chief executive of Wealth Club said, “In our latest survey, private market managers were nearly unanimous: many of the most compelling investment opportunities today are found in private, not public, markets. Nearly half expect this dynamic to accelerate sharply over the next five years.
Historically, these opportunities have been out of reach for individual investors, hindered by prohibitively high minimum investments and clunky structures.
With the launch of our new fund supermarket for semi-liquid private equity funds – the first of its kind in the UK – that’s changing. Individual investors can now access top-tier private equity funds – managed by some of the world’s most respected firms – starting from just £10,000.”