A greater proportion of wealth creation is taking place outside public markets, driven by the fact that companies stay private longer. Given the enhanced return and diversification benefits, wealth managers are making private markets a key strategic priority.
By helping clients more adeptly tap into alternatives as part of a holistic approach to portfolio planning, banks and wealth managers can alleviate the margin pressures they are experiencing today.
HNWIs’ capital commitments to PE expected to significantly grow in all markets
High-net-worth individuals (HNWIs) are increasing their capital commitments to private equity at a rate that will outpace institutional growth in the asset class, with a compound annual growth rate of 19% by 2025.
By 2025, HNWIs will account for more than 10% of all capital raised by Private Equity funds.
Source: Boston Consulting Group