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.
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.
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.
Pick the topics you care about. Get only what matters, on your cadence.