Role of Private Assets in portfolios and society – webinar

Kate Leppard and Caspar Rock were joined by Rainer Ender, Head of Private Equity at Schroders Adveq, and Jeremy Rogers, Chief Investment Officer of Big Society Capital.

Some of the key points raised:

- Private assets can play a valuable role in diversified portfolios, where investors can afford to lock up a portion of their capital for the longer term.

- The private equity model has proved resilient through two periods of severe market stress: Covid-19 and the financial crisis of 2008.

- While some of the earliest private equity investors were feared as “barbarians at the gate”, the industry is now increasingly aware of its social responsibilities.

- Private equity can offer a way to access successful companies that are remaining private for longer than has traditionally been the case.

- The industry’s strong track record means it attracts significant capital, reducing the “illiquidity premium” on offer.

- The private market in impact investments is a source of significant untapped opportunity, offering diversified sources of returns with low correlation to other portfolio holdings. Revenue streams are often government-backed.

- Impact investments can provide solutions to significant UK social challenges. Areas that Big Society Capital has been investing in include housing for vulnerable groups, debt for social enterprises and social outcome contracts.

This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

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