When discussing private markets, it’s important to highlight their diversity. In other words these markets encompass various asset classes. While private equity, which involves investing in the capital of developing companies, is the best known, private markets also provide access to investments in private debt and real assets like real estate and infrastructure.
The best analogy is buying a new car from a dealership, purchasing from the used market, and finally buying from a certified professional who customises your vehicle”
We identify three investment strategies: the primary market, which involves investment funds; the secondary market, where existing stakes are acquired from other investors; and co-investment, enabling direct investment alongside fund managers. “The best analogy is buying a new car from a dealership, purchasing from the used market, and finally buying from a certified professional who customises your vehicle”, explains Florent Saint-Quentin.
“The philosophy of private markets is to support the growth of companies while avoiding the pressures of public markets.”
Advantages and Timelines
Unlike publicly traded assets, private markets are not listed. In other words, investing in private markets means investing in the real economy, in other words in the capital or debt of companies that are not publicly traded. “The philosophy of private markets is to support the growth of companies while avoiding the pressures of public markets”, notes Florent Saint-Quentin.
Private markets offer a wide range of sectoral diversification, including health care, education, various types of commerce, technology, and finance. This extensive investment universe presents numerous opportunities for discerning investors. Another key feature of private markets is their long-term focus, necessitating a commitment to investments of a similar duration.
This longer timeline allows for value creation by fostering a company’s growth, including improvements in operational efficiency. As Florent Saint-Quentin notes, “Just like investing in a property, renovations and expansions take time before they can be rented out.”
Experience, Trust, and Transparency
For Indosuez managers, the approach to private markets is first and foremost characterized by an experience spanning more than 20 years. This depth of experience ensures that clients have strong access to a wide range of established investment funds. “What sets the type of support we offer apart is the relationship of trust and transparency we build with our clients”, states Beatriz Oreja. As a result, Indosuez offers both advisory services and the development of tailored portfolios as essential components for clients interested in private market investments.
For more information, listen to the Banking Insider podcast or contact , , or from Indosuez Wealth Management.
Subscribe to the Banking Insider podcast on , , or on your preferred streaming platfom by clicking on .
We look forward to bringing you another episode of the Banking Insider podcast very soon!
This podcast and related articles are for informational and general purposes only, and do not constitute investment advice. Before making any decisions, it is your obligation to ensure that the product or service is suitable for your personal and financial situation. All investment decisions involve risks, including loss of capital. Please seek advice from professionals.