Mara reposted this
Great post by Farid highlighting the absence of UK advisers in private markets. I speak with dozens of financial advisers and wealth managers about this very topic and find the reasons fascinating. Some of the niche structural problems in the UK preventing advisers stem from... ...over-regulation: the FCA categorises private funds as high risk Non-Mainstream Pooled Investments (NMPI), which lowers the risk tolerance for many regulated financial services businesses, like wealth managers and personal pension (SIPP) administrators. Fundamentally, is a diversified portfolio of early stage businesses managed by an established venture capital fund really riskier than a single stock traded on the AIM? Or is a UK domiciled closed-ended senior secured private credit fund really riskier than an open-ended hedge fund domiciled in the Cayman investing in esoteric financial instruments? PI Insurance: largely stemming from the above, many insurers either won't include private assets within the scope of permitted advice for financial advisers, or they price the coverage so high that it is uneconomical for financial advisers to pay for coverage. Financial incentivises - or lack of: if the organisation you work for says you can't advise on this stuff and your PI Insurance coverage wont extend to private markets, how can advisers book private assets and earn fees on them? As we were talking with Chris Tottman of Notion Capital yesterday, these kind of obstacles are hindering UK growth and only serve to widen long term wealth inequality. Advisers want in, their clients do too, so something has to give there. Will politicians act and pressure the regulators for change?
Private Markets @Mara | Private Wealth | Alternative Investments | Ex-Investment Banking | Podcast Host 🎙️
Private markets hold immense potential, yet they remain significantly underutilised in the UK. While private markets represent 15% of client assets globally, in the UK, they account for a mere 2%. This gap is an opportunity waiting to be seized. According to a recent NextWealth survey, several challenges keep advisers hesitant: 👉 Regulatory complexities create #uncertainty 👉 Concerns about #illiquidity make advisers cautious 👉 Valuation complexities add layers of perceived risk 👉 Accessibility barriers limit client engagement Even more striking, two-thirds of advisers never discuss private markets with their clients! The conversations that do happen tend to focus on accumulation, overlooking the potential of private markets as a diversification and growth tool across various strategies. We are at Mara, believe these barriers are not insurmountable. With the right structures in place, private markets can be simplified, accessible, and aligned with the needs of advisers and their clients. Our mission is to bridge this gap. We specialise in bespoke SPVs and feeder fund structures, enabling fund managers and advisers to access private markets efficiently, reduce complexity, and engage a broader range of investors. Through partnerships with different sponsors, we’re making private markets accessible in ways that weren’t possible before. The UK has a tremendous opportunity to embrace private markets as a mainstream asset class. By simplifying access and overcoming these long-standing challenges, we can unlock significant value for both investors and advisers. If you’re ready to explore how private markets could work for you, Drop me a message! #PrivateMarkets #InvestmentManagement #WealthManagement #FinancialAdvisors #AlternativeInvestments #PrivateEquity #VentureCapital #AssetManagement #CapitalMarkets #InvestmentSolutions #FinancialInnovation #InvestorEducation #PortfolioDiversification #UKFinance #MaraInvest https://lnkd.in/e4m2TnFg