Clients seeking greater returns and diversification in their portfolios have been showing increased interest in private markets and 88% of respondents reported that clients are seeking access to illiquid markets.
Alternative asset markets have remained relatively stable at a time of uncertainty and volatility for public markets.
Gareth Lewis, chief executive and co-founder of Delio, says that the challenge for wealth managers is not deciding if they should offer access to private markets, but how they can do so in a scalable and efficient way.
“While there is an inherent risk associated with these types of investments, the way that this manifests itself is very different from public markets,” he said. “The relatively illiquid nature of private markets means they are less affected by shifts in investor sentiment due to external factors, which we see in public markets regularly, and especially in the last few weeks.”
Investments of choice
Lewis says that he has seen a significant increase in wealth management firms offering direct investments in the past three years, while access to funds has dipped.
