IFA’s plan to boost their client’s exposure to private markets amid global stock market volatility.
Research by Wealth Club found advisers expect to recommend client’s to invest in private equity, real estate, venture capital, private debt and infrastructure.
Some 41 per cent expected inflows from investors into venture capital to rise from 5 to 10 per cent in the next five years, compared to the previous five year period.
While 38 per cent expected to see the same with private debt and infrastructure and 37 per cent in private equity investment.
Alex Davies founder and chief executive of Wealth Club said: “The shifting sands of global stock market volatility is driving investors towards more stable assets, our research reveals.
“Returns from private markets can be reasonably uncorrelated with this global uncertainty, so it is clear why IFAs and wealth managers consider these a no-brainer for some of their sophisticated and high net worth individual investors.”
The research also found 70 per cent of IFAs expected to see investment into private markets increase between 25 and 50 per cent in the next two years.
Meanwhile, 87 per cent of respondents managers expect stock market volatility to increase slightly in the next 12 months and a drastic increase in volatility was predicted by 9 per cent of respondents.
More than half (58 per cent) estimated private market funds would hit $20tn by 2031.
alina.khan@ft.com
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