private markets

Investment advisors in both the US and Europe have been expressing a desire to increase allocations to alternatives, but the average allocation has remained modest, according to gatekeeper surveys by Cerulli and PGIM.

Moonfare is offering a golden ticket for the masses with its new app, making private equity investing as simple as ordering a pizza.

European ambitions to boost capital flow through increased retail investment, exemplified by the European Long-Term Investment Fund (Eltif), hinge on tax incentives to encourage widespread savings, essential for success.

The rapid growth of ESG investment has not left private markets behind. LPs and GPs, having taken stock of where the wind is blowing, have moved towards an ‘ESG or nothing’ investment philosophy, with the majority planning to cease investing in or promoting non-ESG private markets products by the end of 2025, according to a new Luxembourg study. This development is part of a paradigm shift in the global private markets landscape.

Fresh registrations for alternative investment funds in Luxembourg, considered the top European hub for private investments, this month are at their lowest monthly level in nearly six years. Regulatory changes as well as market conditions are cited as a reason for the slowdown. Some issuers have decided to wait for the new year to avoid regulatory reporting in 2022.

Private market investments have become overweight in institutional portfolios following this year’s substantial declines in public markets. Half of investors are waiting “as long as necessary” for this dislocation to subside. The other half is concerned, a new survey by Bfinance shows. The report is of particular interest to Luxembourg, where interest in private assets and alternative investments has increased significantly in recent years.

Asset services provider Apex Group has announced a collaboration with BlackRock’s eFront to provide its ESG data consulting services to investors in private markets.

During negotiations on the fee that asset managers charge institutional investors for the management of a mandate, providers give an average discount of 5 to 15%. However there is no transparency about the average price that providers actually charge for mandate management, explained Duncan Higgs and Kathryn Saklatvala, following the publication of their research into fund house fees last week.

The question is whether the illiquidity of private markets is still an issue if the market becomes more volatile again. Especially when you realise that liquid markets can also become illiquid.