Platforms are having to “act swiftly” to strengthen their investment menu as the number of investors entering the private market landscape intensifies.
Some 146,000 high-net-worth (HNW) individuals are currently invested in private assets, according to Investment Trends, with an additional 32,000 signalling their plans to start soon.
Popular alternative investments that HNWs are invested in include private equity, private debt and credit funds, private real estate and infrastructure funds, and venture capital trusts.
“The amount of money HNWs are pouring into alternative investments is accumulating at an accelerated pace,” Investment Trends said.
“The trend looks set to continue with 32,000 more planning to start, but also enabled by asset consultants and growing availability on platforms.”
For players in the platform market, meeting the rising adviser and client demand for private market opportunities has become increasingly critical for them to stay competitive.
The research company’s 2024 Platform Competitive Analysis and Benchmarking Report unpacked how platforms are responding to this across their investment menus, administration, and reporting.
“Platforms are acting swiftly to strengthen their investment menu with private markets exposure and to enhance their administration and reporting functionality,” it said.
Starting with BT Panorama, which has an approximate market share of 12.2 per cent as at September 2024, the platform recently teamed up with alternative markets data provider Preqin to deliver greater education and transparency on private markets.
Educational modules are now accessible via BT Academy as a result of the partnership. Moreover, Panorama users can access several Preqin research reports on alternative investments.
Over at Netwealth, with a market share of 8.2 per cent, the platform is currently partnered with global fintech iCapital to provide wider access to global private markets.
Netwealth offers access to a diversified menu of global private markets and hedge fund opportunities from iCapital’s platform, including equity, credit, real estate, and infrastructure.
A research portal with detailed information on each available investment is also available, as well as educational resources to strengthen clients’ understanding of private markets.
HUB24, which has a 7.9 per cent market share, provides educational material via presentations and white papers to support advisers in meeting the advice needs of their HNW clients.
The platform also took a minority stake in Reach Alternative Investments last September to offer a broader range of alternative products to its advisers. The two companies will collaborate to co-design innovative products and solutions in the alternatives space, HUB24 said.
Ending on Praemium, which has a market share of 2.5 per cent, its advisers can access an e-book containing research insights on alternative assets for enhanced advisory services.
It is also seeking to hold a leadership position in alternative assets through its strategic partnership with alternative investment firm Stropro. This will help advisers leverage structured products and integrate Stropro’s experience in the products and relationship with investment banks into the Praemium platform.
