Private wealth is rapidly emerging as a key growth area for the private markets industry.
An increasing number of private market firms are actively developing products to cater to individual investors.
This ‘democratisation’ is lowering the cost of access, opening up a new frontier of private assets, such as private equity, private credit, infrastructure, venture capital and real estate.
However, there are significant challenges for GPs to get this right.
Different approaches are needed in almost every area of the business - including product design, regulation, distribution, marketing and technology.
There are plenty of considerations, and risks, for those looking to embark on the private wealth journey.
The following guide provides an in-depth summary of the issues involved. Featuring interviews and quotes with those that have already started their journey towards greater access to private markets. Thanks to all contributors.
We hope the guide provides valuable insights that inform your approach on how best to access the private wealth channel.
Chapter 1: Market Opportunity
For the last three decades, GPs have catered almost exclusively to institutional investors. Now though, family offices and HNW investors – extending to the mass affluent – are the focus of new fundraising efforts.
Chapter 2: Target Markets
For the last 25 years, family offices have been the dominant addressable market for private bank feeder funds. That is now changing as technology and product innovation bring evergreen solutions to the mass affluent market.
Chapter 3: Product Design
Just as the rise in popularity of ETFs in the mutual fund industry, a similar trend could well transform private markets in the coming decades.
Chapter 4: Distribution Models
As firms venture into developing evergreen funds for private wealth, distribution strategies must prioritise adaptability and precision.
Chapter 5: Building Brand
A well-established brand can foster confidence and credibility with potential investors. In the private wealth sector, where individuals are investing their personal assets, trust is paramount.
Chapter 6: Education
Unlike institutional investors, product education and ongoing engagement are vital. Advisors have to be clear on the fund’s value proposition and how it is managed to ensure that they convey accurate information to their end clients.
Chapter 7: Technology Transformation
Whatever the asset class, designing and constructing an evergreen product is a significant undertaking; one that every GP has to approach with eyes wide open.
