2018 BNP PARIBAS PRIVATE ASSETS SURVEY
EXPLORING TRENDS IN PRIVATE EQUITY AND PRIVATE REAL ESTATE FUNDS
Conducted by Scorpio Partnership for BNP Paribas Wealth Management, the survey explores the behaviours and trends of private investors and non-investors in Private Equity and Real Estate (PERE) funds.
The report which polled 337 High Net Worth Individuals (HNWIs) with more than USD5 million in investible assets across 9 countries in Europe, in Asia and the Gulf region shows:
- On average, active investors in Private Equity and Private Real Estate funds hold 16.3% of their portfolio - their #1 asset allocation in their wealth while holding 15.8% in cash and a further 15.3% in stocks/equities.
50% of HNWIs are willing to invest at least USD500,000 in 2018 in Private Equity funds and 40% of HNW non-investors in Private Equity or Private Real Estate funds are likely to invest into these asset classes in the near future.
For more than a third the benefit of these investments is to balance their wider portfolio; with a similar proportion led to consider this asset class by their Relationship Manager.
A NEED FOR ADVICE
Study participants consisted of Millennials under 35 years old, Generation X / Generation Y and Baby Boomers. They confirm their increasing confidence in Private Equity and Private Real Estate solutions and underline their need for information and advice:
- Over 60% of HNW individuals indicate that they were either familiar or extremely familiar with Private Equity and/or Private Real Estate Solutions.
- One-third of HNW non-investors has never been introduced to these investment opportunities and relies mainly on their private banker and financial adviser for access.
“Over the past 12 months, we have seen a significant pick up in clients’ appetite for Private Equity and Private Real Estate funds. In this persistenly low interest rate environment, investors are looking for diversification and double digit returns to optimise their portfolio’s risk return profile. We are aiming to raise almost a billion euros in 2018. The private market funds we are planning to launch over the next six months will allow our clients to fully benefit from exposure to the real economy in Europe, Asia or US where on the one hand, high performing companies need to develop further and on the other, added-value Real Estate strategies can be implemented. These strategies respond to our clients‘ demand and are differentiating for the ongoing development of BNP Paribas Wealth Management’s activity.”
CLAIRE ROBOREL DE CLIMENSGLOBAL HEAD OF PRIVATE AND ALTERNATIVE INVESTMENTS
PRIVATE MARKETS CHARACTERISTICS
- Recognized as a profitable, illiquid and long-term investment with low volatility contributing concretely to the growth of the real economy with high return potential. These funds enable clients to diversify their wealth through different strategies (LBO, growth, value-added real estate…) and geographies (USA, Europe, Asia). In Private Equity, clients invest at different stages of the companies’ growth, by supporting their managers’ development strategy. In Private Real Estate, clients also like to invest in tangible real assets where value creation is implemented by local experts.
TO KNOW MORE
Visit our private investments pages
About BNP Paribas Wealth Management
BNP Paribas Wealth Management is a leading global private bank and the largest private bank in the Eurozone. Present in three hubs in Europe, Asia and the US, over 6,800 professionals provide a private investor clientele with solutions for optimising and managing their assets. The bank has €364 billion worth of assets under management (as at 31 December 2017) and was awarded “Best Private Bank in Europe, in Asia and in the Western United States” in 2017.
About Scorpio Partnership
Scorpio Partnership is the leading insight and business consultancy to the global wealth industry. The firm specializes in understanding the wealthy and the financial institutions they interact with. We have developed four transformational disciplines – SEEK, THINK, SHAPE and CREATE – each designed to enable business leaders to strategically assess, plan and drive growth. We leverage our deep insight into client needs and expectations to create practical and actionable business development strategies.
Press Contact BNP Paribas Wealth Management
Servane Costrel de Corainville - +33(0)6.74.81.98.27 – servane.costreldecorainville@bnpparibas.com