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UK Fund Managers Increase Personal Stakes in Private Markets

Twelve percent of personal wealth is currently committed to private markets by UK fund managers, a figure expected to climb to 18 percent within three years. New research from Wealth Club indicates that those managing private equity, credit, real estate, and infrastructure are increasingly backing their own sector with significant capital.

UK Fund Managers Increase Personal Stakes in Private Markets

The survey of 100 professionals, conducted by Pureprofile, reveals a strong alignment between fund managers and their investors. While only 2 percent of respondents currently hold no private market investments, that number is expected to shrink to 1 percent as managers shift more capital into the asset class. Roughly one-fifth of those surveyed plan to allocate between 25 and 50 percent of their personal portfolios to these markets by 2029.

Accessibility is driving this trend, with 52 percent of managers favoring semi-liquid structures over traditional closed-ended funds. The industry is also pivoting toward tax-efficient wrappers; nearly all surveyed managers expressed interest in using SIPPs or ISAs to house these alternative investments. Wealth Club CEO Alex Davies noted that this level of personal commitment acts as a powerful vote of confidence in the long-term viability of the sector, particularly following a challenging period for private equity in 2022 and 2023. This sentiment mirrors broader market trends, with 90 percent of advisors surveyed by Blackstone recently reporting plans to increase or maintain their private equity exposure.

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