Private Markets: Opportunities, Growth, and Education at IMPower Fund Forum in Monte Carlo

Private markets are experiencing a surge in popularity, with experts highlighting the growth potential and opportunities presented by these traditionally exclusive investment avenues. At the recent IMPower Incorporating Fund Forum in Monte Carlo, Monaco, asset management, wealth management, and financial services firms gathered to discuss the democratization of private markets and the benefits they offer to a wider range of investors.

Markus Egloff, MD, Head of KKR Global Wealth Solutions at KKR, emphasized how institutional investors have long recognized the potential of private markets and have increased their allocations accordingly. Now, with regulatory changes and technological innovations, these markets are becoming more accessible to retail and wealth investors.

José Cosio, Managing Director at Neuberger Berman, stressed the importance of allowing retail clients to invest in private markets to diversify their portfolios and generate consistent long-term results. The discussion at the forum also focused on the need for greater financial education to bridge the gap between different types of investors.

Experts highlighted the benefits of private markets in terms of diversification, volatility management, and profitability. Marco Bizzozero, Head of International at iCapital, emphasized the need to move beyond traditional portfolio allocations to give clients access to value creation. Jan Marc Fergg, Global Head of ESG & Managed Solutions at HSBC Private Bank, underscored the importance of diversification and the role private markets play in managing volatility.

The conversation also touched on the changing landscape of public markets and the concentration of returns in a few stocks, leading to a shift in perception towards private markets. Stephanie Drescher, Global Head of Wealth Management at Apollo, emphasized the need for a healthier dialogue about the risks and benefits of both public and private markets.

Education was highlighted as a key factor in allowing greater access to private markets, with experts advocating for more flexible structures like semi-liquid funds to cater to different investor preferences. Technology was also seen as a crucial tool in making private markets more accessible and efficient for wealth and retail investors.

Overall, the forum showcased the opportunities in private assets such as private equity, private debt, real estate, and infrastructure, with experts discussing the potential benefits of incorporating these investments into portfolios. Private credit emerged as a particularly attractive option, with experts citing its growth potential, stable returns, and diversification benefits in a changing market environment.

The momentum of private credit investment was a key theme at the event, with experts highlighting the opportunities presented by this asset class. The discussion also touched on the risks associated with private credit, such as higher interest rates and the importance of manager selection in navigating potential challenges.

In conclusion, the IMPower Fund Forum shed light on the growing interest in private markets and the opportunities they offer for investors looking to diversify their portfolios and generate consistent long-term returns. With education, innovation, and a focus on investor needs, private markets are poised to play an increasingly important role in the investment landscape.