Private market fund managers in the UK have already expanded their retail market offering or intend to do so in the next two years, according to new research.
Among UK private market fund managers with approximately £2.4trn in assets under management across private equity, private credit, infrastructure and real estate, 86 per cent have launched, or intend to launch, semi-liquid funds for individual investors.
Read more: Transparency ‘paramount’ as private markets open up to retail investors
The study by Wealth Club, a UK-based non-advisory investment service for tax-efficient and private market investments, found that the remainder (14 per cent) have ruled out launching semi-liquid funds.
Its research revealed 28 per cent of respondents have launched funds, while 58 per cent plan to do so.
Of those planning to bring new funds to market, 81 per cent will do so within the next two years.
The findings point to a confidence among private market fund managers of their expansion plans targeting sophisticated individual investors.
On average, they expect inflows to be around 6 per cent in five years’ time, while 20 per cent forecast inflows of 7 per cent or more.
Read more: HNW clients set to increase private market exposure by up to 50pc
Of those surveyed, 74 per cent expect the amount of individual investors’ wealth held in private market funds to increase by 25 per cent or higher in the next two years, and all private market fund managers questioned by Wealth Club expect growth of at least 10 per cent.
The majority (61 per cent) of private market fund managers said the minimum investment for individual investors in their semi-liquid funds will be £15,000.
“Private markets are opening up to individual investors, with fund managers increasingly targeting this sector with specific funds,” said Alex Davies, founder and chief executive of Wealth Club.
Read more: Retail investors will drive 50pc of private market flows by 2027
