2020 BNP Paribas Global Entrepreneur Report
Entrepreneurs have unique and distinct requirements in an ever-changing world; only a global private bank can assist in their path of value creation with the ability to build a bridge between their personal and business needs.
Serving these exceptional individuals is at the core of the offering at BNP Paribas Wealth Management and well ingrained in our DNA.
In the past six years, BNP Paribas Wealth Management has engaged with over 15,000 high net worth (HNW) and ultra-high net worth (UHNW) entrepreneurs across the world in an effort to better understand their motivations and ambitions, their behavior and profiles as both investors and drivers of business and economic growth. And each year we discover insights to reinforce our commitment and support to our clients who are successful entrepreneurs; to address their personal and professional ambitions.
“Our research shows that in regular markets, Private Equity outperforms the stock market by approximately 6% per annum. In downturns, like The Great Recession or the Dot-Com bubble crash, Private Equity strategies outperform public markets even more, which gives clients some comfort.”
Prashant Bhayani, Chief Investment Officer (Asia) at BNP Paribas Wealth Management
The sixth iteration of our Global Entrepreneur Report, in association with Aon, consists of several parts. The first part of the report focused on a global overview of entrepreneurial investment, wherein it appeared that entrepreneurs allocate 20% of their investable wealth to Real Estate and Private Equity. Real Estate in particular was viewed as a safe asset class especially in the Asian context.
The recent part two of the 2020 Global Entrepreneur Report focuses on Private Equity and Private Real Estate. The outlook of entrepreneurs globally on these segments is fascinating and demonstrates both the highly attractive nature of Private Equity and the deep sophistication of HNW entrepreneurs. Furthermore, it highlights the unique nature of the Elite entrepreneur population, focused on business excellence and looking for performance across investment and market cycles.
While the report also highlights different patterns – in particular with regards to liquidity risks or macroeconomic uncertainty - in outlook depending on geography, age and gender, these key findings underline the strong cultural affinity between entrepreneurs and investors for private assets. The unique place of Real Estate as a core investment within most investment portfolio is also confirmed, with entrepreneurs expected to continue to increase their portfolio allocation to the asset class (from 10% to 18%) in the next 12 months.
At BNP Paribas Wealth Management, we also believe diversification is a key feature of investment strategies. Over the past years, we have seen a significant pick up in clients’ appetite for Private Equity. In this persistently low interest rate environment, investors are looking for diversification and higher returns to optimise their portfolio’s risk return profile. We have been facilitating Private Equity investments since 1998, and have established a proven track record in this highly specialised asset class.
In a context marked by the Covid-19 crisis, we are helping even more of the world’s most demanding entrepreneurs. As a responsible private bank serving the economy, our objective has always been, and continues to be, to improve our own understanding of how to support entrepreneurs both personally and professionally. This is the purpose of the report.
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Disclaimer: This advertisement has not been reviewed by the Monetary Authority of Singapore. The information contained in this article does not constitute and should not be construed as an offer or solicitation to sell or buy any securities, investment instruments or any other services. Any reference to past performance should not be taken as an indication of future performance. Information and opinions contained in this article are obtained from public sources believed to be reliable, but are not to be relied upon as authoritative or taken as a recommendation or investment advice or in substitution for the exercise of independent judgment by the recipient, and are subject to change without notice. BNP Paribas makes no representation or warranty, express or implied, with respect to the accuracy or completeness of any information contained in this article. You should seek advice from your own professional adviser regarding the suitability of any investments (taking into account your specific investment objectives, financial situation and particular needs) as well as the risks involved in such investments before a commitment to purchase or enter into any investment is made. Where this article includes a reference to Real Estate, please note that BNP Paribas, acting through its Singapore branch is not licensed to and does not offer real estate service, and nothing herein should be construed as such."
Neither BNP Paribas nor any of its officers or agents shall be responsible or liable for any reliance made on any statement or information set out herein. Distributed in Singapore by BNP Paribas, acting through its Singapore branch (UEN/Registration No: S71FC2145G), a licensed bank regulated by the Monetary Authority of Singapore. BNP Paribas is a public limited company (societe anonyme) incorporated in France with liability of its members limited. BNP Paribas Wealth Management is the business line name for the Wealth Management activity conducted by BNP Paribas.