Many of the world's greatest growth businesses are staying private for longer. So, do advisers have to allocate to private markets for growth?
Australian Ethical Investment’s Head of Private Markets Adam Roberts certainly thinks so, noting that most businesses listing on public market exchanges are far bigger and more mature than they’ve been in decades.
This is because they can raise vast amounts of capital from private market investors like venture capital firms, hedge funds, and endowments - meaning most of their growth happens well before they IPO. Roberts also cites regulatory pressure, shareholder activism, and cost and compliance as the culprits for the shrinking IPO market (particularly for high-growth tech companies).
In this interview, Adam takes advisers through some of the opportunities (and world-class managers) Australian Ethical is invested in across private equity, venture capital, private debt, infrastructure and real estate today, as well as why he believes an ethical and impact framework can drive value for clients.
Chapters:
00:00 Introduction: Private Markets and Growth
01:13 Why Companies Stay Private Longer
03:28 Retail Access and Investment Risks
05:49 Assessing Private Market Managers
07:52 Credit Risks and Portfolio Diversification
09:52 Where Adam Sees Opportunity
11:42 How Much to Allocate
14:18 Private Markets in a Portfolio
15:29 Sponsor Message
16:27 Renewables, Housing and Infrastructure
21:02 Private Equity and Venture Capital
25:37 Ethical Investing and Adviser Takeaways
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CPD Points: This episode is accredited for the following CPD points by the Financial Advice Association of Australia (FAAA). Complete the quiz here to claim your points.
0.5 Total Hours
Knowledge Requirements: Alternative Assets (0.25 hour), Managed Investments (0.25 hour)
Legislated CPD Area: Technical Competence (0.50 hour)
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This episode has been sponsored by Australian Ethical.
Visit AustralianEthical.com.au to find out more.
Please read the PDS and TMD to consider if the product is right for you. Issued by Australian Ethical Investment Limited AFSL 229949
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This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional.
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