Talking Point  

Understanding the world of private assets investing

  • Explain background to private assets investing
  • Identify new avenues open to retail investors
  • Identify ways to address liquidity issue
CPD
Approx.30min
Investing in private assets
While private assets can act as a diversifier it is important to understand the liquidity/illiquidity factor
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Investing in private assets has historically been a preserve for the very wealthy.

But in recent years more avenues have been opening up to retail investors, driven in the main by changing regulation and technology.

As more investors are given access to private assets – funds that are typically held in investments that are not publicly traded – it is very important for investors to understand the pros and cons of this investment approach.

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This feature, which is worth 30 minutes of CPD, will look at what investors need to understand about private assets.

ima.jacksonobot@ft.com

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What are the benefits of private assets investing?

  2. Why does Tom Douie say that illiquidity could work in an investor’s favour?

  3. True or false, Alan Gauld says that private equity, as an asset class, tends to make many of its best investments at the lower end of the market cycle?

  4. What is one way Alan Gauld says retail investors can also address illiquidity?

  5. What is the most often cited risk with private assets?

  6. True or false, Tom Douie says the flip-side of being able to buy and sell whenever an investor wants is that the clearing and share prices may not necessarily represent the value of the underlying illiquid assets?

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You should now know…

  • Explain background to private assets investing
  • Identify new avenues open to retail investors
  • Identify ways to address liquidity issue

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