As seen in MoneyWeek – Private Markets may “yield the most exciting returns in the years ahead”

“From the fastest-growing firms to the infrastructure that will deliver net zero, the assets with the potential to yield the most exciting returns in the years ahead are not to be found in public arenas such as stock exchanges and bond markets. You’ll need to invest privately.”

That’s from a recent article by David Prosser in investor magazine MoneyWeek – you can download the full article below. It makes a compelling case for why experienced investors might want to consider Private Markets.

But what exactly does that mean?

If you’re not familiar with the term, “Private Markets” are a broad category of investable assets that are not traded or quoted on a public exchange. They cover Private Equity and Private Credit – as well as infrastructure and other real assets.

In recent years, the barriers to investing in these markets have come down significantly – particularly since the launch of semi-liquid funds, “a more flexible way for individual investors to access Private Equity and other Private Markets”.

Remember, Private Markets investments are for the long term. They are high risk and illiquid. They are only for eligible investors. 

MoneyWeek’s article raises two interesting points in our view:

1. Is the “traditional 60:40 portfolio” still fit for purpose? As a rule of thumb, investors are often told to put 60% of their capital into equities and 40% into bonds. But does this still make sense in the context of shrinking stock markets and more volatile bond markets?
2. Could “the new breed of semi-liquid funds” in Private Markets offer potential advantages for investors? Could these funds open up a broader set of opportunities than publicly traded alternatives (such as investment trusts)? And does the return potential justify the risks and higher costs?

Note that Private Market investments are high risk and illiquid and should be seen as a long-term commitment. Any returns are not guaranteed and could take several years to generate a return, and you could lose the capital you invest.

The MoneyWeek article also mentions our Private Markets platform which gives eligible investors access to some of the best-known specialist managers.

It’s the first platform of its kind in the UK for semi-liquid (or ‘evergreen’) Private Markets funds. You’ll find funds that invest in Private Equity, Private Credit, Secondaries and Infrastructure. Minimum investment sizes start from just £10,000.

You can see the available funds, but for more details you’ll first need to qualify as a high net worth or sophisticated investor – this can be done online using the form below.