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Magazine Issues » November 2022

Roundtable: Private equity in a new decade

Funds Europe – Given the changing circumstances of the alternatives market, is there scope for the ‘retailisation’ of alternatives?

Allright – It’s already starting, certainly in the US and Europe; in Europe with the Eltif [European long-term investment funds] legislation.

Pesch – We would rather use the word ‘democratisation’ because it is a gradual approach. It should be done in a constructive way. The democratisation of private assets certainly contains a huge potential.

But in Europe, there are still heterogeneous definitions between ‘well-informed’, ‘professional’ and ‘non-professional investors’, which is certainly one element which should be dealt with quickly.

And as well as this, which products would be the best ones to fit in with this move towards democratisation? We need also to ask the industry if everybody is willing to go down that path. If they are, then through which operational model – i.e, closed-ended or semi open-ended funds?

Certainly, technology needs to be embedded and questions need to be answered about how the industry could use tokenisation to make democratisation quicker and more efficient. There are then questions about which technology platforms already exist and what services are proposed.

Degosciu – There are different types of listed private equity companies and asset managers, so there is already a very easy way to invest into this asset class without minimum investment, without lock-up periods. That’s basically what we have done for 18 years.