News | 06.08.22
Large Private Equity Firms Turn Attention to Vast Retail Market
Private equity firms are going after wealthy investors. Some of the biggest firms have created a host of new products aimed at people with $1 million to $5 million in investible assets and are hiring staff to market them to private banks and independent financial advisors. Individuals worth $1 million or more held $79.6 trillion in investible assets globally in 2020, according to a 2021 report by consulting firm Capgemini. Private equity firms estimate that less than 5 percent of that is currently invested with them. “It’s a land grab,” said Matt Brown, chief executive of CAIS, a platform that gives independent financial advisors access to alternative investment products. “You’re seeing the mutual fund boom 2.0,” he said, referring to the rise in popularity of mutual funds during the 1990s.
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