Exploring the breadth of private assets available to wealth managers

As private markets become more accessible, we explore the breadth of investment opportunities available to wealth managers seeking to stay competitive.
Private markets may play a key role in long-term investment strategy, could potentially offer risk-adjusted performance and diversification benefits than publicly traded asset classes. Over the long run, we expect portfolios that include private assets to outperform those that do not.
For wealth managers, this can be important in remaining competitive, but access to private markets has traditionally been hindered by high investment minimums, complex cash flow management, and suitability issues.
Tech-enabled platforms have lowered investment thresholds, simplified cash flow management processes, and streamlined suitability assessments, potentially making it easier for wealth managers to access private market funds at institutional pricing. These platforms can provide sophisticated analytics for detailed portfolio insights, modelling tools, and comprehensive investment overviews across various dimensions. With a diverse range of funds onboarded, wealth managers can now help clients build customised portfolios tailored to their specific goals.
Below, we explore how wealth managers can potentially diversify their client’s portfolios with the breadth of private assets that are becoming increasingly accessible to them.
Private equity
Private debt
Credit opportunities
Infrastructure
Real estate
Secondaries
Co-Investments
Evergreen funds
Assessing potential opportunities that fit your clients’ unique objectives
Wealth managers are increasingly recognising the value of private markets in helping enhance long-term investment strategies, offering potential advantages in risk-adjusted performance and diversification. We believe, with continued growth in accessibility, portfolios that integrate private assets are expected to potentially outperform those that do not.
However, effective allocation to private markets requires a client-centric approach. Wealth managers should carefully assess each client’s unique financial goals, risk tolerance, and liquidity needs before incorporating private assets into their portfolios.
Global Wealth Manager Proposition Leader, Mercer
Investments Director, Mercer Alternatives
Senior Researcher, Global Wealth Management, Global Strategic Research
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