UK private market fund managers are accelerating their move into the retail space, with 86 per cent either having launched or planning to launch semi-liquid funds aimed at individual investors, according to new research from Wealth Club.
The study, commissioned by Wealth Club and surveyed managers overseeing around £2.4 trillion in UK assets across private equity, credit, infrastructure and real estate, found that nearly three in 10 or 28 per cent have already brought semi-liquid funds to market, while a further 58 per cent intend to do so, 81 per cent of those within the next two years. But just 14 per cent have ruled out entering the semi-liquid space.
The research shows managers expect strong growth, with retail investor inflows forecast to make up 6 per cent of assets in five years, rising to over 7 per cent for one in five. Nearly three-quarters predict retail allocations will grow by 25 per cent or more in the next two years, and all expect at least 10 per cent growth.
Wealth Club founder and chief executive Alex Davies says: “Private markets are opening up to individual investors with fund managers increasingly targeting this sector with specific funds.
“Our research highlights the number of fund managers across private equity, private credit, infrastructure and real estate already doing so and the substantial numbers planning to join them as well as showing the level of inflows they expect.
“Private market funds and individual investors however need support from specialist platforms if both sides are to achieve good outcomes. That includes being able to service smaller investors and making dealing efficient.”
