Russell Investments and Invest Blue partner on private market SMA

Russell Investments has partnered with financial advice firm Invest Blue to launch the Cornerstone Private Markets Managed Portfolio, to expand private market access for Australian advised investors. 

According to ASIC, growing investor interest in private credit funds has seen assets under management rise from $0.6 billion in 2014 to $2.8 billion in 2024, marking a rise of 240 per cent over the last decade. 

However, as some private companies opt to remain unlisted for longer, with the average time before IPO doubling globally in the past two decades, Russell Investments said retail investors now risk being locked out of value creation if they are limited to just publicly listed companies. 

And while demand for these assets has grown, accessibility remains a challenge for retail investors. 

The firm said this portfolio aims to bridge this opportunity gap for advised investors, allowing them to access private equity, private credit and real asset investments. 

Developed in collaboration with Ironbark Asset Management, the portfolio utilises a separately managed account (SMA) structure with a $25,000 minimum initial investment requirement.  

Invest Blue and Ironbark announced they would be merging back in September 2023, bringing multiple areas of financial services specialisation under one roof. 

The cornerstone portfolio will invest across three to 15 holdings in private equity, private credit and real asset, and combining evergreen, open-ended strategies with listed exposures, including ETFs, to deliver staged access to capital. 

The firm explained that this will give qualified advised clients of Invest Blue “diversified access to institutional-quality private market opportunities within structures designed for retail investors”. 

Once launched, the portfolio will be available on the BT Panorama platform for advisers who meet criteria set by Invest Blue with monthly pricing and platform-based reporting. 

Russell Investments head of distribution for Australia, Neil Rogan, suggested that the firm’s long experience with private markets and international reach means it is well placed to help address the gap between retail investors and private market access. 

“Our global scale and manager research means we can help open the door for Australian advised clients to participate in institutional-grade opportunities – overcoming many of the traditional barriers faced by retail investors,” Rogan said. 

When it comes to private markets, Rogan said that manager selection is critical as performance can vary widely, noting the value of the firm’s global scale that allows it to partner with the best, “giving retail clients institutional-grade access with greater confidence”. 

While access to private markets has largely been relegated to large institutions and ultra-wealthy investors, Invest Blue chief investment officer Chris Ogilvie said this portfolio will open the door for retail investors. 

“Many of the world’s most innovative and successful companies are choosing to stay private. This managed portfolio allows our clients to participate in those opportunities – through a carefully designed structure for retail investors,” Ogilvie said. 

Alex Donald, chief executive of investment solutions at Ironbark, added: “Private markets are increasingly being recognised by advisers as an important source of diversification and long-term return potential. At Ironbark, we saw a real opportunity to democratise access to these assets through a retail-compatible managed account structure that features institutional-grade controls around governance, transparency, and liquidity management.”