Market view and Insights
Private markets are investments made in assets not traded on a stock exchange. In this segment, LGT focuses on private equity - in other words, the direct financing of enterprises by private investors - and also covers private debt, private real estate, private infrastructure and commodities. These investments generally have a very long investment horizon. This long-term commitment is often rewarded with an attractive return.
Investors who choose to make a private equity investment acquire a stake in the equity of a company and can participate directly in its success. In contrast to traditional investments such as equities, returns on private equity investments are driven primarily by a company’s performance and are less impacted by market developments.
LGT is a leading global provider of alternative investment opportunities such as private equity and private debt. We have a long-standing and successful track record in this asset class and enjoy access to the world’s best asset managers. This is crucial to investing successfully, especially in private markets.
Unlike traditional investments, private equity solutions are not listed on a stock exchange and are generally illiquid. When investing in private equity, it is therefore important to plan for a longer investment horizon because you will usually not have the option of selling your stake before it reaches maturity.
Private equity funds have historically yielded higher returns over the long term than investments in listed equity. However, the differences between the winners and losers are greater than for traditional equity funds. This makes it all the more important to choose the right funds and the right fund managers.
The proportion of private market investments in the Princely Portfolio.
The Princely Portfolio’s strategic allocation to private equity. This is significantly higher than for an average pension fund.
Our broadly diversified fund-of-funds solutions invest in up to 1 500 companies.
Most private equity funds have a term of between ten and twelve years, during which time investors must commit to capital calls up to the subscription amount.
We are committed to providing our clients with straightforward advice on the features of the private markets and explaining their opportunities and risks.
Private equity is an attractive addition to any portfolio. But we also offer our clients many other exciting investment opportunities. Are you interested in sustainable investments? Or would you like to invest your assets according to the same strategy as the Princely Family of Liechtenstein? If so, you will find what you are looking for here.
We have touched only briefly on a selection of topics here. If you are looking for more information on these or other topics, you might be interested in the following: