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New research highlights wealth manager interest in private assets

New research into the opportunities in private assets for wealth management clients has found there is significant interest amongst wealth managers to invest in private assets on behalf of clients, with 80 per cent already doing so. 

There are barriers though, including operational and regulatory challenges and a lack of appropriate investment vehicles, that are standing in the way of greater allocations.

The research, conducted by the Investment Association and Goji, a provider of regulated platform technology, also focused on the new fund structures that would facilitate investment in private assets, including the new Long-Term Asset Fund (LTAF).

The research found that many wealth managers are already making small allocations to private assets, including private equity, real estate and infrastructure, as they seek to provide additional sources of diversification, enhanced performance, and an alternative source of income. There is also significant potential for further growth, as wealth managers are allocating on average only 5 per cent of their total assets under management to private assets and see greater allocations in the future as a way to enhance client outcomes. The majority of wealth managers also believe demand from their clients for private assets will increase.

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