Global investment into private assets is growing exponentially. We at IQ-EQ have seen this trend for sometime now given our front-line role as fiduciary and administration outsource partner of choice for global investors driving this trend, including family offices, ultra-high net worths (UHNW), alternative asset fund managers, pension plans and sovereign wealth funds.
Put another way, we've have a front row seat to a sort of 'convergence' of both private and institutional investors into the private capital space globally.
This front-line/outsource partner perspective has given us an insight in this space. Including the complexity involved in properly administering alternative assets in an efficient and compliant manner. This is an ongoing challenge given trends around globalisation, transparency, and increased regulation and taxation. We felt this to be the right time to share our experience more broadly and to take it further with industry research to expand on our own experiences and gather others' views on the future of this asset class.
Together with Nomura, we've partnered with Barton Consulting to produce this report which was compiled from insights collected from research conducted in the second quarter of 2021, against the backdrop of the COVID-19 pandemic. The research was conducted directly with investment professionals focused on private capital, as well as individual non-professional investors in private capital.
A global audience of private capital investors, both private (U)HNW individuals (with a minimum net worth of $15m) including their family offices, as well as professional investors, across North America, Europe & Asia-Pacific were surveyed.
The results of the research show solid confidence levels for the current state of the private capital industry. Both professional and non-professional investors viewed most sectors within the private capital industry – such as venture capital, private equity & real estate – positively, with approving views on fair pricing and firm return expectations.
Whilst the majority of private capital investments are currently focused on both North America & Asia, it is the latter that is considered the most exciting region for future opportunities. Technology-related sectors are currently the hottest and biotech and IT were the most exciting industries for opportunities in private capital investment.
ESG is one of the most talked-about concepts in the investment world, and it is a growing issue/consideration for private capital investors. Just under a third of those surveyed claim that ESG principles have a major role for them in investments, and, perhaps despite or even because of the COVID-19 pandemic, the vast majority of investors have made ESG even more of a focus in the last 12-18 months.
We at IQ-EQ are proud to have commissioned and share this report. We sincerely hope you and/or the investors in private assets you represent find it useful.