Nicolas Bickel

Unlike institutional investors who have been investing in private markets for many years and have adopted a similar approach to it, the way high-net-worth (HNW) clients deal with private markets is much more heterogeneous. 

Edmond de Rothschild’s private clients who are convinced by – and can commit to – private equity and other private asset classes, usually do so with between 10% and 25% of their total wealth. Their exposure depends on liquidity needs as well as other factors that are unique to the individual such as age and familiarity with the asset class.

We have noticed a constant increase in money invested by clients into private markets, both on an absolute euro basis and relative to the size of their account. This has been a long-term trend, seen by us for the past five years, at least. The main reason assets under management being invested in private markets are going up, is because HNWs who have never invested in the asset class before have been taking the plunge.