High-net-worth individuals (HNWIs) and family offices are increasingly exploring private markets for portfolio diversification and enhanced returns, traditionally a domain reserved for institutional investors. Shenal Kakad, Head of Private Markets at Barclays Private Bank, highlights the expanding access to private equity, venture capital, and infrastructure funds for private clients through new investment vehicles. While larger family offices have the resources for direct investments, smaller HNWIs benefit from aggregation options like feeder funds, allowing access to a full spectrum of private market opportunities. According to Barclays' recent report, HNWIs are embracing private equity and venture capital for their potential to deliver higher returns, despite the inherent risks and economic volatility.
This shift toward private market investments is driven by the appeal of lower volatility and long-term growth, aligning well with Barclays' support for private clients through due diligence and manager selection. Impact investing is also gaining traction, with private clients increasingly seeking investment options that reflect their values and societal goals. Barclays emphasizes the importance of selecting top-performing managers, as 88% of private equity capital raised this year went to experienced managers. Enhanced regulatory frameworks in the EU and UK, such as the SFDR and ELTIF, are expected to further democratize access, enabling private clients to participate in private markets more broadly.
