Since 1987, Campden Wealth has provided unrivalled proprietary intelligence directly from the world wealthiest families to facilitate peer-to-peer learning.
Now, in partnership with Campden, we are pleased to bring you the inaugural Ultra-High Net Worth Private Equity Investing Report 2023. This report has been meticulously crafted and has no equivalent in the market. It contains valuable insights from 120 Ultra-High Net Worth (UHNW) investors, detailing motivations for turning to private equity, the challenges faced, and investment processes adopted. It conducts a deep dive into UHNW private equity portfolios, assessing investor sentiment across sub-asset classes, strategies, geographies and sectors.
Source: Pitchbook. As of Q1 2024.
Key findings include
The vast majority of ultra-high-net-worth (UHNW) investors are engaged in private equity investing, with 84% currently invested and an additional 10% actively interested.
The most significant barriers to private equity investing are illiquidity and high risk of capital loss - with 36% and 24% citing these as their number-one barrier, respectively.
The average UHNW investor allocates 20% of their overall portfolio to private equity, divided between direct investments (52% of the average private equity portfolio) and fund investments (48%).
There has been remarkable growth in private equity investing. For many, allocations had doubled over the past two years, and investors are looking to continue increasing their private markets exposure as a key driver of long-term performance. It is clear that appetite for the asset class, along with investor sophistication, is increasing at a rapid pace.
Source: Campden Wealth / Titanbay, The Ultra-High Net Worth Private Equity Investing Report 2023. Note: Figures may not sum exactly to 100% due to rounding.
On average, investors plan to increase their private equity allocation by an additional three percentage points (to 23%) and tilt their private equity portfolios further towards direct investments (+4pp to 56%).
Sixty-four per cent of participants with private equity allocations currently hold direct deals and an additional 14% are actively interested.
Technology (70%) and healthcare (67%) are the most popular sectors, with investors prioritising smaller funds.
On average, UHNW investors allocate 21% of their private equity portfolios to venture capital, 28% to growth equity, 26% to buyouts, 11% to special situations and 14% to other strategies.
Source: Campden Wealth / Titanbay, The Ultra-High Net Worth Private Equity Investing Report 2023. Note: Figures may not sum exactly to 100% due to rounding.
Important Disclosures
This material has been prepared by Titanbay Ltd and its affiliates (together, “Titanbay”) and is provided for information purposes only. This document is directed at professional investors and qualified investors who have sufficient knowledge and experience to understand the risks of investing in private market investments.
This material should not be construed as legal, tax, investment advice or an invitation, general solicitation, recommendation, an opinion regarding the appropriateness or suitability of any investment strategy, or offer to buy, sell, or hold any investments or securities offered on or off the Titanbay investment platform. The views, opinions and estimates expressed herein constitute personal judgments of certain members of the Titanbay team based on current market conditions and are subject to change without notice. This information in no way constitutes Titanbay research and should not be treated as such. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice.
All information presented herein is considered to be accurate at the time of production unless otherwise stated and has been prepared from sources Titanbay believes to be reliable. No representation or warranty or guarantee, express or implied, is given as to the truth, accuracy or completeness of the information or opinions contained herein and material aspects of descriptions contained in this material are subject to change without notice. No reliance may be placed for any purposes on the information or opinions contained in this material. Titanbay is not responsible for any error or omission in this material, nor do we accept liability for any losses arising from its use. Non-affiliated entities mentioned are for informational purposes only and should not be construed as an endorsement or sponsorship of Titanbay.
Investments in private placements and private equity investments via feeder funds in particular, are complex, highly illiquid and speculative in nature and involve a high degree of risk. The value of an investment may go down as well as up, and investors may not get back their money originally invested. Investors who cannot afford to lose their entire investment should not invest. Past performance, including simulated performance, is not a reliable indicator of future performance. For private equity investments via feeder funds, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. Investors who cannot hold an investment for the long term (at least 10 years) should not invest.
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