On Tuesday, October 8th, XA Investments hosted a panel discussion on private equity accessibility and trends in the alternative investment world.
ALTI CEO, Joseph Bonvouloir, spoke alongside alternative investing experts including Artivest’s Clayton Cheek, Pantheon’s Head of Private Wealth, Doug Keller, and Chris Shepherdson of CR Capital Distributors. The panel was moderated by XA Investments Managing Director of Alternative Investments, Kimberly Flynn.
Panelists shared their insights on recent trends that they have been tracking in the market. These include increased high net worth investor allocations to private equity, growth in the number and size of private companies versus public companies, and increased discussion by industry and regulatory leaders on ways to make alternatives and private placements accessible more broadly to investors.
The panelists also shared some insights on how these trends are likely to continue in the future. More and more companies are considering the “hassle cost” of being listed publicly. Because of this, fewer companies have been going public over the past several years and many public companies are choosing to go private. Seeing this transfer in opportunity, investors have increased their allocations to private markets. The panelists concurred that private equity can be a beneficial addition to diversified portfolios for all investors. And while private equity is generally considered an illiquid investment that tends to have a long time horizon before maturation, it was agreed that the asset class is less correlated to public markets than most other investment options, bringing an element of diversification to Main Street investors’ portfolios. The group also felt that new technology platforms can dramatically improve access and understanding private equity as has been seen with other alternative investment products in real estate and private credit.