Listed Private Capital represents the only way for public market investors to get access to the large, diverse and growing set of private investment opportunities. Total returns have proved attractive over the medium and longer term, and the key asset classes of listed private equity, listed infrastructure and listed private debt allow investors to structure portfolios across risk buckets, industry sectors, geographies and from growth to income strategies.
Recognising the increase in diversity and depth in the underlying private capital markets, LPEQ has repositioned to represent the growing LPC space as a whole rather than focusing exclusively on listed private equity (LPE).
A number of structural themes are driving growth in PC: investors’ need for long-duration assets in an extended low interest rate environment, large pension deficits, ageing populations and stretched government balance sheets in developed economies. Developing economies are witnessing rapid urbanisation and the need to invest in key infrastructure projects. New technology continues to be a driver including in healthcare and alternative energy. Finally, regulatory change has led to a retrenchment of banks’ financing capabilities, while the wealth of affluent and high net worth individuals continues to grow.
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Private capital AUM has grown from $0.7tn in 2000 to $5.2tn in 2017Preqin/McKinsey.