UK private market fund managers believe self-invested personal pensions will play a major role in expanding sophisticated and high-net-worth investor participation in private markets over the next five years, according to research from investment service Wealth Club.
The study of 100 private market fund managers found that 85 per cent believe increasing access to private market investments through SIPPs will have a positive impact on investor participation over the next five years.
Almost one in four (24 per cent) believe the impact will be very positive. More than three-quarters (77 per cent) of private market fund managers say they are likely to develop products specifically for investors using SIPPs over the next five years, with just 3 per cent ruling it out altogether.
Around three-quarters (74 per cent) of fund managers are also likely to develop products suitable for ISAs over the next five years although some continue to cite the UK’s unique regulatory framework as a barrier to adoption.
Alex Davies, founder and chief executive of Wealth Club, says: “The UK’s SIPP market represents one of the biggest long-term growth opportunities for private markets. It’s encouraging to see that fund managers clearly recognise that, with the overwhelming majority expecting SIPPs to play an increasingly important role in opening up private markets to sophisticated investors.”
Earlier this year Wealth Club earlier launched the UK’s first dedicated private markets SIPP, enabling investors to access a range of semi-liquid private market funds.
