Key Takeaways
- • Only 2% of private markets fund managers currently lack personal investments in the asset class, with this figure expected to halve to 1% over the next three years, signaling broad conviction among portfolio managers in private markets exposure.
- • 26% of private markets managers utilize investment trusts as a vehicle for their personal allocations, indicating structured products are a preferred mechanism for accessing the asset class.
- • The trend reflects increased confidence in private markets among institutional asset managers, with the vast majority already deploying personal capital alongside their fund operations.
Summary
Private markets fund managers are demonstrating strong conviction in their asset class through heightened personal capital allocation, according to recent data from Investment Week. The findings reveal that 98% of private markets managers maintain personal investments in private markets, with that penetration rate expected to rise further over the next three years as the remaining 2% without exposure gradually enters the market.
Among those with personal allocations, 26% utilize investment trusts as their preferred investment vehicle, reflecting the structured product market's role in facilitating manager participation in the asset class they professionally manage. This deployment mechanism suggests managers view investment trusts as efficient vehicles for accessing diversified private markets exposure while maintaining appropriate governance structures.
The near-universal participation of fund managers in the asset class they manage is notable from a signaling perspective, as it indicates broad-based confidence in private markets fundamentals and risk-adjusted return profiles. The expectation that the remaining 2% without allocations will substantially reduce over three years suggests either organic adoption as new opportunities emerge or potential reshuffling of the manager population. This data point is particularly relevant for institutional investors evaluating manager alignment, as personal capital deployment has traditionally been viewed as a credible signal of manager conviction and alignment with investor interests.
Among those with personal allocations, 26% utilize investment trusts as their preferred investment vehicle, reflecting the structured product market's role in facilitating manager participation in the asset class they professionally manage. This deployment mechanism suggests managers view investment trusts as efficient vehicles for accessing diversified private markets exposure while maintaining appropriate governance structures.
The near-universal participation of fund managers in the asset class they manage is notable from a signaling perspective, as it indicates broad-based confidence in private markets fundamentals and risk-adjusted return profiles. The expectation that the remaining 2% without allocations will substantially reduce over three years suggests either organic adoption as new opportunities emerge or potential reshuffling of the manager population. This data point is particularly relevant for institutional investors evaluating manager alignment, as personal capital deployment has traditionally been viewed as a credible signal of manager conviction and alignment with investor interests.
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