INDEFI

Individual-native vehicles set to drive two thirds of private markets growth by 2030

• ‘Individual-native’ vehicles (incl. LTAFs & ELTIFs) are poised to account for 65% of growth in European private market allocations by individual investors during the remainder of this decade.
  
  
• Allocations to private markets from the wealth channel to exceed EUR 600 billion by 2030.
  
  
• By the end of the decade, the wealth segment is expected to drive 60% of the additional accessible revenues from managing private assets.
  

PARIS, Oct. 31, 2024 (GLOBE NEWSWIRE) -- According to new research from specialist asset management strategy consultant Indefi, individual-native products such as ELTIFs & LTAFs are poised to account for 65% of the growth in European private market allocations by individual investors over the next five years.

This is a result of individual-native vehicles gaining traction among distributors due to their appeal to a wider range of clients, including non-professional investors. These new vehicles offer lower minimum investment thresholds while simplifying operational challenges, particularly around liquidity management.

The growth of evergreen and semi-liquid offerings is transforming operational and compliance standards, requiring more frequent asset valuations, eliminating capital calls, and reducing the barriers to entry for individual investors.

Overall, European individuals are expected to increase their private market investments by €250 billion, growing from €360 billion in 2024 to over €600 billion by 2030. This represents a compound annual growth rate (CAGR) of over 10%, largely driven by the rise of individual-native vehicles.

As a result, the wealth segment is projected to generate 60% of the additional accessible revenue for private market asset managers by the end of the decade.

Richard Bruyère, Managing Partner at Indefi, comments: “Individual-native products are unlocking a set of cross-selling opportunities across countries, clients segments and distribution channels.”

“Across Europe, retail-native vehicles are emerging as a key force driving the democratisation of private assets. Amid this shift, an increasing number of intermediaries are crafting in-house tailored private asset solutions, while outsourcing single private asset building blocks to third-party managers. In the UK specifically, LTAF offerings have primarily targeted DC pension schemes so far, and we expect a spillover effect. This expansion of retail-native products is the most compelling growth opportunity for the asset management industry in Europe, drawing growing interest from a broad range of competitors from traditional asset managers, specialized GPs to U.S. and global private market platform leaders.”

Media contacts:

Toby Bromige
+44 (0)7870 982471
Toby.Bromige@JPESpartners.com

Zana Kurshumlija
+44 (0)7753 183250
Zana.Kurshumlija@JPESpartners.com

Notes to editors

Indefi is the leading consultant to asset managers. Working with firms from the top 10 largest global firms to boutique and private market specialists, Indefi provides actionable roadmaps to achieve their growth objectives. Operating across Europe and the U.S., the firm combines a global viewpoint and in-depth local market expertise. Client services are focused on practical guidance for growth and span growth strategy, market entry, product development and enhancement, sustainability and M&A support.