Retail Investors

As more PE firms look to institutionalise their business, part of their strategy is to increase allocations from new investor bases.

Retail investors want to be in alternatives for the same experience as institutional investors and should not be pushed on products, said Marc Lipschultz.

Firms pushing for democratisation in private markets need to ensure educating retail investors is a critical part of the journey, says the firm’s global head of alternatives.

With retail investing in alternatives still in its infancy, headwinds remain before the $179trn global pool of individual investor capital can be fully tapped.

Topics du jour included LP sentiment around today’s heady fundraising environment and frenetic dealmaking; the pervasiveness of continuation vehicles; and the democratisation of private markets.

Panellists at ALFI’s PE & RE Conference said increased regulation, financial literacy and the democratisation of PE are key long-term trends for the industry.

The alternatives giant's plans come as firms including Ares Management and Apollo Global Management make a concerted push into raising capital from wealthy individuals.

Fundraising, deals and exits as of the third quarter are at record levels, the alternatives giant reported on its latest earnings call.

The investment firm expects the wealth channel to account for about 30% of capital raised over time, it said during its latest investor day presentation.

Early mover ADDX is providing accredited investors with access to blue chip private equity funds, including Partners Group’s €5.5bn Global Value SICAV.