Why Wealth Managers Are the Best Private Market Matchmakers: New Research

Why Wealth Managers are the Ultimate Private Market Matchmakers, a new report from this publication and research partners Hywin Wealth and VP Bank, is launched today. Download your free copy by following the link in the article.

According to a new report from WealthBriefingAsiaHywin Wealth and VP Bank.

Why Wealth Managers Are the Ultimate Private Market Intermediaries addresses what is an extremely important topic for the industry, especially since it is reported that there is an estimated $385 billion of “dry powder” awaiting deployment in private markets across the region. Find out how this trend manifests itself and the current customer’s point of view on the supply.

Some 69 wealth management advisors, investors and private market professionals were interviewed for this report, including a range of high and ultra-high net worth investors based in mainland China, Hong Kong and Singapore.

The potential for outsized returns is by far the strongest incentive to invest in private markets, with the majority (42%) expecting a minimum internal rate of return (IRR) of 11-15%, although numbers much higher high were cited by respondents. (IRR is a way to calculate returns taking into account complex trade entry and exit times.)

Greater diversification was the second most important driver, but attractive investment opportunities, participation in genuine innovation and ESG objectives were all frequently cited as the top three drivers for investing in private markets.

For wealth managers, the lack of available expertise and the complexity of regulations are seen as the biggest challenges in the private market. For investors, the biggest barrier to private markets is lack of visibility into opportunities (cited by 50% of survey respondents), followed by lack of confidence or knowledge (24%). Companies will need to invest in talent, networking, and thought leadership for advisors and clients to effectively connect with this esoteric realm.

Expert Contributors and UHNW Customers
Opening this far-reaching report is an interview with Madame Wang Dian, Managing Director of Hywin Wealth and Pamela Hsu Phua, CEO for Asia, VP Bank, which will be published tomorrow. They both provide an overview of private markets investing as a topic and, specifically, more in-depth examples of how they open up these assets to their clienteles.

Comments from expert contributors covering the private market ecosystem also inform our survey findings: Satya Bansal, Founder of Blue Ashva Capital; Carmen Cheung, Managing Director, Samsung Asset Management (Hong Kong) Limited; Cora Cheung, Founder, C-Advisory; Lucie Hulme, CEO, TriLake Partners; Callum Laing, Founder and CEO, MBH Corporation; Shan Hock Liew, Managing Director, BOCI; Franco Ng, CEO, Zeal Asset Management Limited; Ian Pollock, Hong Kong, Managing Partner, Stanley Bay Capital; Noor Quek, Founder and CEO, NQ International; Cliff Sheng, Partner, McKinsey & Company; Tim West, Partner, Head of Alternative Investments, EY UK; Nick Wong, Managing Partner, Altive; and Chauwei Yak, founding partner, GAO Capital.

Why Wealth Managers Are the Ultimate Private Market Intermediaries pursues a research partnership between
WealthBriefingAsiaHywin Wealth and VP Bank, which started with the 2020 report Asia-Pacific Women Winners: Insights for Wealth Managers Direct from Clients.

Download your free copy of Why Wealth Managers Are the Ultimate Private Market Intermediaries by completing your details here.

Dolores W. Simon