Despite the threshold changes, institutional investors are still the biggest players in private markets.
But not all alternative investment products are that stringent on liquidity or structured that way. Some asset firms offer evergreen and open-ended funds that allow quarterly redemptions. Even then, it’s not like a public stock where there’s almost a guarantee that you can sell your shares on the open market and will find a buyer, Tyler Meyrick, head of private assets at Purpose, said.
“But if you’re 40 and you’ve got a house, you funded your kid’s education, and you don’t think you’re going to need the bulk of your portfolio until you retire in 20 or 25 years, then some portion of your portfolio going into private investments probably makes a lot of sense for you.”Article contentPrivate assets are generally less regulated than public investments and there are plenty of options in which to invest.
Meyrick said there’s a wide range of performance outcomes for each asset manager and he suggests picking blue-chip firms when beginning to invest.Article content Meyrick said firms offer these ETFs, known as liquid alternatives, on public indexes and can allocate up to 10 per cent of the fund to private markets, though most firms tend to focus investments on public securities.
For example, National Bank Trust Inc. offers the NBI Global Private Equity ETF. Its top three holdings are Partners Group Holding AG, Blackstone Inc. and KKR & Co Inc. — all private-equity firms.If you use a broker but don’t have $1 million in net assets or an annual income of $200,000, your portfolio manager can file regulatory exemptions on your behalf that would allow them to allocate part of your investments to alternatives, Meyrick said.
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