Private equity and private credit, please meet private investors.
On Tuesday, Allfunds, the wealth tech platform on which private banks and wealth managers pick the best fund offerings from thousands of asset managers to put their wealthy clients into, announced that BlackRock is joining the Allfunds Private Partners programme (APP).
Launched in July, this is a new initiative to reconfigure private equity and credit portfolios originally designed for institutional investors into new formats that can be sold to high net-worth and ultra-high net-worth individuals.
BlackRock oversees $320 billion in alternative investments, of which $156 billion is in private markets.
In meeting after meeting over the last couple of years, private banks have been asking what funds we could offer them in private markets
Investing in private markets is really two businesses: asset origination, selection and portfolio management is one; fundraising is the other.
The rapid rise in interest rates has hit both. Private companies are now raising new money in down rounds at lower valuations than the previous investments held in private equity portfolios.
Institutional investors in those funds are wary of losses still to come.
