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Investor alleges exclusion from private market remediation scheme

Created at 30 Jun · 6:30 AM1 source↑ Market-relevant
IN SHORT

An investor has claimed they were kept out of the loop regarding a remediation scheme tied to a subprime mortgage lender, raising questions about transparency and process in private market dealings. This comes as a Barclays report highlights evolving investor sophistication in private markets.

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Key Numbers

30%average portfolio allocation to private markets
81%investors prioritizing legacy and intergenerational wealth planning
$83.5 trillionestimated wealth transfer by 2048
550wealthy individuals surveyed globally
150General Partners surveyed

Who's Involved

Barclays Private Bank and Wealth Management
Published a report on private markets and investor needs
Shenal Kakad
Global Head of Private Markets at Barclays Private Bank and Wealth Management
Savanta
Research agency that assisted with the Barclays report

↳ Why This Matters

The investor's allegation points to potential governance and transparency issues within private markets, while the Barclays report underscores the growing importance and evolving sophistication of these markets for high-net-worth individuals, particularly in light of a massive impending wealth transfer.

Key facts

  • An investor claims they were not informed about a remediation scheme linked to a subprime mortgage lender.
  • Barclays Private Bank and Wealth Management published a report on private markets.
  • The report surveyed over 550 wealthy individuals and 150 General Partners globally.
  • Private markets are increasingly integrated into high-net-worth investor strategies.
  • Investors are demonstrating greater sophistication by scrutinizing opportunities and seeking liquidity flexibility.
  • An estimated $83.5 trillion is expected to be transferred to younger generations by 2048.

An investor has alleged they were kept uninformed about a remediation scheme connected to a subprime mortgage lender, highlighting potential issues with transparency in private market dealings. This situation arises as Barclays Private Bank and Wealth Management releases its latest report, 'Mind the gap: How private markets can align to the evolving needs of private investors'.

The Barclays report, developed with research agency Savanta, surveyed over 550 wealthy individuals globally and nearly 150 General Partners. It indicates that private markets are no longer a niche asset class but are becoming a more common component of high-net-worth investor strategies. The findings suggest a shift in investor behavior, with individuals showing increased sophistication by scrutinizing opportunities more closely, favoring established managers, and exploring structures that offer both performance potential and liquidity flexibility.

A significant driver for this trend is the anticipated 'Great Wealth Transfer,' with an estimated $83.5 trillion expected to be passed to younger generations by 2048. This unprecedented transfer of intergenerational wealth is reshaping the private wealth landscape, with 81% of investors stating that a key priority for investing in private markets is to support a legacy and achieve intergenerational wealth planning objectives.

Frequently asked questions

It refers to the estimated $83.5 trillion in wealth expected to be passed from older generations to younger ones by 2048, significantly impacting investment strategies and the private wealth landscape.

Private markets include investments not traded on public exchanges, such as private equity, venture capital, private debt, and real estate, often accessed by institutional and high-net-worth investors.

The report found that private markets are becoming mainstream for wealthy investors who are increasingly sophisticated, focusing on strategy, established managers, and liquidity flexibility, partly driven by the upcoming wealth transfer.

What Happens Next

01Further details on the remediation scheme and the investor's exclusion are expected.
02The private markets industry will likely continue adapting to meet the demands of a new generation of investors.

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How It Developed

An investor alleged they were excluded from a remediation scheme related to a subprime mortgage lender.
Barclays released a report titled 'Mind the gap: How private markets can align to the evolving needs of private investors'.
The report surveyed over 550 wealthy individuals globally and nearly 150 General Partners.
Findings indicate private markets are becoming a common strategy for high-net-worth investors.
Investors are showing increased sophistication, scrutinizing opportunities and favoring established managers.
A significant intergenerational wealth transfer is anticipated, with 81% of investors prioritizing legacy and intergenerational wealth planning.

Sources

T1
What next for the UK’s private stock markets?Financial News London
T2
Mind the gap: 5 key takeaways from Barclays' new report on private marketshome.barclays

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