Investing in Private Assets

Private Markets offer differentiated sources of income and capital returns relative to the traditional asset classes. They can also provide diversification benefits when included within broad asset allocation strategies. As such, they are vital for clients looking to enhance the risk-adjusted return potential and overall quality of their investment portfolios.

Access to these markets is being democratised by regulatory developments, technological advances and the break-down of liquidity barriers. As a result, they are presenting attractive opportunities to a greater range of investors than ever before.

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Risk warnings

• Investments in private markets investments are highly illiquid and therefore unsuitable for investors who cannot hold their investment for the long term (at least 10 years).
• Investments in private markets and sub-categories such as private equity, particularly via so-called feeder funds, are speculative and risky.
• The value of investments and the income from them may fall or rise, meaning that you may get back less than the amount invested.
• Past performance is not a reliable indicator to future returns.
• With regard to “Private Markets Access”, we hereby expressly refer to the risk assessments, fees and costs in the product data sheet of the respective investment offer.
• Investments in private assets may invest in private or less liquid assets. These may be difficult to sell and investors may not be able to redeem their investments at the desired time.
• Private debt investments are subject to credit risk, i.e. the possibility that borrowers may default on their interest payments or repayment of the capital. If the borrowers are small or medium-sized companies, this risk is higher. Although the loans are usually collateralized, there is no guarantee that the loan will have priority over all other debts if it is subordinated to other creditors, or that the collateral will match the value of the loan if it has to be liquidated. Liquidity is different for the various strategies. For example, while there is an active secondary market for broad-based syndicated loans, it is not as active or developed for direct loans. 
• Structured credit investments may include exposure to pools of assets, including broadly syndicated loans, commercial and residential mortgage-backed securities, and consumer or business loans. These pools can be very sensitive to changes in the value of the underlying assets. The interests in a collateralized loan obligation vehicle are illiquid and subject to transfer restrictions.

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Unless stated differently, information dated as of July 2024

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