BITE Investments, a fintech company with an alternative investment platform, has published a new white paper which presents a strong case for private equity investments and important factors for success.
Titled, “Private Equity: A Growing Opportunity for HNW Investors,” the white paper shares timely data which demonstrates the steady growth of the private equity market, driven by high returns and increasing investor sophistication.
BITE CEO William Rudebeck cites industry projections that by 2024, global private equity AUM is forecast to reach $6.4 trillion.
“There is considerable attention now focused on the private equity market,” says Rudebeck. “In an environment of high volatility, private equity has performed well and is forecast to continue its climb over the next few years as more HNW individuals seek a greater ROI. Of course, capturing the growing opportunity in private equity depends on several key factors. At the top of the list are efficient, fully integrated technologies which deliver a seamless investment process from diligence, compliance and know your customer (KYC) steps, to investment selection and monitoring.”
Rudebeck also emphasises the importance of inter-industry partnerships. “Leveraging private equity market conditions will also be a function of strategic alliances between fintech companies, wealth managers and other investment advisors so that the optimum targeting of HNW investors can be achieved.”
In the BITE white paper, readers will be guided through a discussion of alternative investments and their growth trajectory, the inclination of HNW investors today to allocate assets evenly between direct and fund investments, and how private equity allocations of HNW investors in different regions are projected to increase in 2021.
Additionally, many financial professionals will find extremely helpful the discussion on what is driving HNW investors’ higher demand for private equity which the BITE white paper explains. Among the HNW alternative investment drivers noted in the report are the capital appreciation opportunities, current returns, dissatisfaction with traditional asset classes, and a desire for greater portfolio diversification. The BITE white paper delves deeply into these drivers as well as others.
“Currently, only 40 per cent of wealth managers offer private equity investments,” says Rudebeck. “This is largely due to the due diligence requirements which are daunting even for experienced wealth managers who routinely must navigate matters of regulatory compliance. Another obstacle has been the high minimum investment sizes needed to gain access which are beyond the majority of HNW investors. This, coupled with the long lock-up periods, has made alternatives less attractive. At BITE, we have built our entire business model on addressing all of these challenges head-on.”