REPORT: The rise and rise of private capital

Global investment into private assets is growing exponentially. We at IQ-EQ have seen this trend for sometime now and, together with Nomura, have partnered with Barton Consulting to examine it further and produce a report using insight from both professional and private investors in private capital.

Given our front-line role as fiduciary and administration outsourcing partner of choice for many global investors driving this trend?– including family offices, ultra-high-net-worths (UHNW), alternative asset fund managers, pension plans and sovereign wealth funds?– we've have a front row seat to a sort of 'convergence' of both private and institutional investors into the private capital space globally.

In line with this, we see the increasing 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 expertise 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 a detailed report?using insights from research conducted in the second quarter of 2021, against the backdrop of the COVID-19 pandemic. The research was carried out directly with investment professionals focused on private capital, as well as individual non-professional investors in private capital.

Those surveyed form a global audience of private capital investors, both private (U)HNW individuals (with a minimum net worth of $15m) and their family offices, as well as professional investors across North America, Europe and Asia-Pacific.

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 and 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 and Asia, it is the latter that is considered the most exciting region for future opportunities. Technology-related sectors are currently the hottest, with biotech and IT considered the most exciting 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 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 to 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.