Latest news with #alternativeinvestments
Yahoo
2 days ago
- Business
- Yahoo
North America High-Net-Worth Individual Population Surges, While Europe and Middle East Shrink: Capgemini Report
U.S. led the world in growth in its millionaire population, adding 562,000 to reach 7.9 million Ultra-high net worth individual population rises by 6.2% worldwide High-net-worth individuals now allocate 15% of their portfolios to alternative investments, including cryptocurrencies PARIS, June 04, 2025--(BUSINESS WIRE)--The Capgemini Research Institute's World Wealth Report 2025, published today, reveals the global high-net-worth individuals1 (HNWIs) population rose by 2.6% in 2024. Now in its 29th edition, the report finds this increase was driven by the growth in the population of ultra-high-net-worth individuals (UHNWIs), which grew by 6.2%, as strong stock markets and AI optimism boosted portfolio returns. The data indicates that alternative investments2, such as private equity and cryptocurrencies, are now an established presence in HNWI holdings, representing 15% of their portfolios. Bullish stock market performance in the U.S. fuels wealth increaseA favorable interest rate environment and strong U.S. equity market returns helped boost wealth creation in 2024. North America saw the biggest gains, with the HNWI population rising by 7.3%. In contrast, Europe, Latin America and the Middle East saw declines in their HNWI populations, as macroeconomic challenges weighed. At the end of 2024, according to Capgemini's research: Europe's HNWI population declined 2.1% due to economic stagnation in major countries, with United Kingdom, France and Germany losing 14,000, 21,000 and 41,000 millionaires, respectively. In contrast, Europe's UHNWI population rose 3.5%, reflecting increased wealth concentration. Asia-Pacific's HNWI population increased 2.7%, with notable variability across the region. Latin America's HNWI population declined 8.5%, due to currency depreciation and fiscal instability. Brazil (-13.3%) and Mexico (-13.5%) witnessed the biggest population declines. The Middle East's HNWI population declined 2.1%, driven by lower oil prices. Within the largest individual markets, the U.S. was the clear leader, adding 562,000 millionaires as the country's HNWI population grew by 7.6% to 7.9 million. India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6% growth, adding 20,000 and 210,000 millionaires, respectively. In contrast, growth in China was negative, with HNWI population declining by 1.0%. Next-gen HNWIs seek wealth management firms that align with investment prioritiesWealth management firms are actively preparing for a new era of wealth transfer in which 83.5 trillion USD3 will change hands over the next two decades, creating the next generation of HNWIs4. According to the report, this handover will unfold in three phases: 30% of HNWIs will receive an inheritance by the end of 2030, 63% will inherit wealth by the end of 2035, and 84% by 2040. "The great wealth transfer will be a defining moment for the industry. Despite global wealth on the rise, 81% of inheritors plan to switch firms within one to two years of inheritance. Potentially losing these unsatisfied clients is going to create significant risk for the global wealth management sector," said Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit and Group Executive Board Member. "The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents. This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey. Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees." As of January 2025, HNWI investors parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies. They are willing to take more risks to expand their wealth – allocating capital to higher growth asset classes and niche product offerings, notably by 61% of millennial and Gen Z HNWIs. To attract next-gen HNWIs, wealth management firms must rethinkThe report highlights that wealth management firms need to refresh and revamp their services and offerings to resonate with the next-gen HNWI customer base. Including: Private equity and cryptocurrencies: 88% of advisors observe a greater interest in alternative assets amongst this group of investors over baby boomers New offshore booking centers: 50% of advisors indicate their lack of capabilities in emerging wealth hubs – Singapore, Hong Kong, UAE and Saudi Arabia – will drive these clients to alternate firms, as they seek diversification, better returns and a favorable regulatory environment Tailored services: concierge services such as luxury travel, medical care, and safeguarding against cyber threats, rank as the top non-financial value-added service most sought after Digital interactions: advisors rank a digital platform providing a holistic client view and actionable insights as the most important capability to effectively serve next-gen HNWIs, followed by intelligent automation of operational tasks like meeting summaries and emails Insufficient support from wealth management firms makes advisors a flight riskAccording to the report, one-in-three advisors express dissatisfaction with their firms' lack of digital capabilities, negatively impacting their productivity, and creating a technological divide. In addition, 62% of next-gen HNWIs say they would follow their advisor if they moved to a different firm. Altogether, this directly impacts retention, as advisors struggle to engage these digital-native clients. Beyond digital resources, the industry is on the cusp of a talent shortage amid an unprecedented transfer of wealth to Gen X, millennial, and Gen Z inheritors. In the next 12 months, one in four advisors plan to be on the move, with a majority transitioning to a competitor firm and a few starting their own ventures. Additionally, 20% of advisors say they will retire by 2035, with 48% planning to retire by 2040. As the great wealth transfer unfolds, the wealth management industry will need to reimagine product offerings through tailored investment options for next-gen HNWIs. Firms must empower and engage advisors with an intuitive digital experience across all channels to secure their loyalty, the report concludes. Read the full report: Sailing through the Great Wealth Transfer Report MethodologyThe World Wealth Report 2025 market-sizing model covers 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization. The Capgemini 2025 Global HNW Insights Survey questioned 6,472 HNWIs including 5,473 Next-gen HNWIs across four regions: Americas, Europe, and Asia-Pacific and Middle East. The 2025 Wealth Management Executive Survey includes 141 responses across 10 markets, with representation from pure WM firms, universal banks, independent broker/dealer firms, and family offices. The 2025 Relationship Manager Survey, executed by Phronesis Partners, includes 1,306 responses across twelve markets. About CapgeminiCapgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, generative AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2024 global revenues of €22.1 billion. Get The Future You Want | About the Capgemini Research InstituteThe Capgemini Research Institute is Capgemini's in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom, and the United States. It was ranked #1 in the world for the quality of its research by independent analysts for six consecutive times - an industry first. Visit us at ____________________ 1 HNWIs are high-net-worth individuals with investable assets of USD1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables. HNWIs are segmented into three categories based on wealth bands: Ultra-HNWIs (USD30 million or more), Mid-Tier Millionaires (USD5-30M) and Millionaires Next Door (USD1-5M). 2 Alternative investments include commodities, currencies, private equity, hedge funds, structured products, and digital assets 3 UBS, "Global Wealth Report 2024" 4 Gen X (aged 44 to 59 years as of 2025), millennial (aged 28-43 years as of 2025), and Gen Z (12 to 27 years as of 2025) inheritors are referenced as "next-gen HNWIs" to signify the generational shift in HNWI wealth View source version on Contacts Press contact: Fahd Pasha Tel.: +1 647 860 3777 E-mail:
Entrepreneur
28-05-2025
- Business
- Entrepreneur
Wealth Management Platform ILIOS 72 Attracts INR 1 Cr in Funding Round
The capital will be deployed strategically: opening a new office in Jaipur, upgrading its digital platform to enhance portfolio tracking and opportunity discovery, and expanding its research and advisory team to deliver tailored, transparent investment solutions. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Wealth management and private equity platform ILIOS 72 Alternative Capital has raised INR 1 crore in seed funding from a consortium of Indian family offices. This marks the company's first external funding round, aimed at expanding its footprint beyond metro cities and upgrading its technology to bring seamless, research-backed alternative investment opportunities to a wider Indian audience. The capital will be deployed strategically: opening a new office in Jaipur, upgrading its digital platform to enhance portfolio tracking and opportunity discovery, and expanding its research and advisory team to deliver tailored, transparent investment solutions. The company also plans to tap into global markets, further diversifying offerings for Indian investors. Founded in 2025 by Shivansh Sabharwal and Valmik Iyer, CFA, ILIOS 72 was born from a simple but ambitious vision: to redefine how Indian families engage with wealth creation beyond traditional instruments. "We started ILIOS 72 with a bold vision: to reshape how Indian families access and engage with alternative investments," said Shivansh Sabharwal. "This seed round is a testament to the trust we've earned and the team that's consistently delivered beyond expectations." ILIOS 72 offers a comprehensive wealth management experience rooted in deep research, transparency, and long-term value creation. Its product suite includes listed equity strategies, private equity, venture capital, and overseas investment avenues, all curated under an open-architecture model that emphasises client success over sales targets. Already trusted by over 100 clients, including several prominent Indian business families, ILIOS 72 leverages the founders' past success managing large portfolios for HNI and UHNI clients and transacting in private markets. "ILIOS 72 is built to redefine wealth management, not as a transactional service, but as a trusted, research-led platform that empowers families," said Valmik Iyer. "We focus on clarity, confidence, and long-term purpose." As India's financial landscape evolves—with growing wealth and a maturing investment mindset—ILIOS 72 is positioning itself not just as a service provider, but as a true partner in financial growth. By tying internal compensation to portfolio outcomes rather than commissions, the firm reinforces its commitment to client-first investing. At its heart, ILIOS 72 is about doing things differently—putting trust, transparency, and long-term thinking at the center of Indian wealth management.
Irish Times
21-05-2025
- Business
- Irish Times
Ireland in prime position to maximise private markets investment potential
Private markets investing is an area with considerable growth potential. 'Private market investing is investing in privately owned companies and credit – so, companies that are not publicly traded on a stock exchange or portfolios of loans secured against real assets,' explains Ken Somerville, head of global fund services Ireland at US Bank. 'These types of investments are attractive because they may offer higher or more predictable returns compared to public markets due to the opportunity for significant growth and the value of real assets.' As a primary EU jurisdiction for funds, alongside Luxembourg, in the Republic of Ireland the key mechanism available to the industry is the funds sector's facility to structure fund vehicle types, under the supervision of the Central Bank, that are suitable for investment into private assets. READ MORE 'Given the less liquid nature of private assets, matching the liquidity profile of those assets to the investor's entitlements is a critical path for success in attracting capital including from a broader range of investors,' says Somerville. Ken Somerville, head of global fund services Ireland at US Bank The Central Bank of Ireland enhanced the State's private assets funds offering in March 2025 via the publication of the updated Alternative Investment Fund Managers Directive (AIFMD) Q&A. 'The updated Q&A introduces a facility that enables alternative investment funds (AIFs) to guarantee third-party debts,' says Somerville. 'This, combined with some additional clarification regarding loan origination – issuance of new loans – substantially addresses the historic challenge of matching the liquidity profile of the investment assets to the investor's entitlements. These clarifications both cement and enhance the position of Ireland as a primary EU and global domicile for the private assets space.' Maximising the sector's potential is important. 'Private markets are a fundamental component of the investment universe,' says Nicholas Blake-Knox, chair of Irish Funds. Nicholas Blake-Knox, chair of Irish Funds 'Accordingly, it is critical that we have the product toolkit and capabilities here in Ireland that asset managers need to make these products available to their investors. It is no longer a nice to have or niche product offering.' The advent of a new type of collective investment framework – ELTIFs, or European long-term investment funds – last year, which allow investors to put money into companies and projects that need long-term capital, was an important step. More work is to be completed through the remainder of this year as we prepare for the transposition of AIFMD II, no later than April of 2026, Blake-Knox points out. The Irish Government's support for the State's funds and asset management industry was clearly expressed in the publication of the Funds Sector 2030 report in October 2024. 'The reform of our domestic alternatives funds regime is high on the agenda and we are encouraged by the opportunities for Ireland that are presented in the upcoming AIF rule book consultation. In addition, if we are able to implement some targeted tax changes, particularly in relation to the introduction of a dividend withholding tax exemption for our investment limited partnership (ILP) vehicle, there are significant opportunities for expanding our private funds footprint,' says Blake-Knox. Already growth in global private markets has more than doubled in recent years from US$9.7 trillion (€8.5 trillion) assets under management in 2012 to an estimated US$24.4 trillion (€21.5 trillion) at the end of 2023. Assets under management in Irish domiciled funds hit €5 trillion at the end of 2024 and the Republic is widely expected to become the largest fund domicile in Europe in the next few years. In terms of the Irish fund structure options, the Irish Collective Asset-management Vehicle, a corporate structure tailored specifically for investment funds, is one of the most popular structures for new funds in the State, including for private assets, say Jennifer Dobbyn and Oisin McClenaghan, funds partners at international law firm Ogier, and has proven popular with US managers as a go-to treaty-based fund structure. 'Following the introduction of the ILP (Amendment) Act 2020, the ILP is now also regarded as a key structure for alternative funds, facilitating greater investment in private assets. The appeal of the ILP has also been enhanced by the introduction of the participation exemption which has applied since January 1st, 2025, meaning that dividends payable to an Irish fund from a non-Irish subsidiary are exempt from any Irish corporation tax,' they add. The revised ELTIF regulation and the harmonisation of loan origination rules through the transposition of AIFMD II are also helpful, they say. 'The 24-hour Central Bank authorisation process is also available to professional investor ELTIFs, which is unique to Europe,' Dobbyn and McClenaghan add. Funds which are focused on private assets have more complex structures, says Philip Murphy, head of asset management tax at KPMG In Ireland. Philip Murphy, head of asset management tax, KPMG Ireland 'In light of this, having a full suite of legal vehicles and a regulatory approach which is efficient, transparent and innovative is important, as fund promoters normally prefer a single domicile with the ability to launch a full suite of investment products from that jurisdiction,' he says. In order to capitalise on expected growth, it is crucial that the State has a complete toolkit available to fund promoters. 'While there have been some positive steps in this regard, such as the changes to the Investment Limited Partnership framework and introduction of the ELTIF II regime in recent years, unfortunately Ireland is still at a competitive disadvantage to jurisdictions such as Luxembourg as a fund domicile for certain private asset classes,' he says. 'Luxembourg has seen a significant growth in private asset funds over the last number of years in the context of its RAIF offering, which is an indirectly regulated product – that is, while the fund vehicle is not itself regulated, the regulated status of its manager provides the requisite regulatory comfort to investors.' This decreases cost and time to launch by avoiding a double layer of regulation. 'We do not have a similar indirectly regulated product offering in Ireland – changing this would likely be transformative for our already very successful funds industry as it could unlock Ireland as a jurisdiction for the full suite of private assets,' says Murphy.
Yahoo
16-05-2025
- Business
- Yahoo
iCapital announces acquisition of Citi Global Alternatives
Fintech platform iCapital has announced the acquisition of Citi Global Alternatives, an indirect subsidiary of Citi. Details regarding the financial terms of the acquisition have not been disclosed. This subsidiary serves as the advisor to Citi Wealth's global alternative investment fund platform, which includes more than 180 alternative funds distributed worldwide. The platform encompasses a variety of investment vehicles across multiple alternative investment strategies and asset classes, such as private equity, growth equity, private credit, infrastructure, venture capital, real estate, and hedge funds. This acquisition aims to enhance operational efficiency and deliver a cohesive technology solution for partners. Citi Wealth Alternatives and Investment Manager Solutions head Daniel O'Donnell said: 'Citi Wealth already has a strong working relationship with iCapital on alternative solutions, and we're excited to expand our relationship to bring greater integration of iCapital's market-leading digital capabilities to our advisors, bankers, investment counselors and clients.' Following the completion of this transaction, iCapital will take over the management and operation of the fund platform. Citi will continue to act as the distributor of these funds and provide advisory services to clients regarding the integration of alternative investments into diversified investment strategies. iCapital chairman and CEO Lawrence Calcano said: 'We are excited to partner with Citi Wealth to drive growth for their alternatives business globally. 'iCapital's technology platform will streamline the operations and management of their current and future alternative investment funds platform.' In January this year, iCapital acquired Parallel Markets, a company specialising in reusable financial identification solutions. "iCapital announces acquisition of Citi Global Alternatives" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Forbes
13-05-2025
- Business
- Forbes
Maximizing Diversification With Alternative Investments For Stronger Portfolios
High net-worth investors (HNWI) are actively maximizing diversification in their portfolios beyond traditional stocks and bonds. Alternative investments are a significant area of focus. This includes inquiries about private equity, venture capital, private credit, real estate, hedge funds, commodities, and tangible assets like art and collectibles. Investors are concerned with the risks and rewards of these investments and their liquidity. Adding alternative investments to a portfolio can help with today's market volatility and necessitates a strategic approach to portfolio diversification. Alternatives, a varied category of assets beyond traditional equities and bonds, can significantly enhance portfolio resilience and growth. Alternatives often display a low correlation with traditional assets like stocks and bonds. As a result, their price movements are not closely linked to these markets. When traditional assets encounter declines, alternatives may retain their value or even appreciate, reducing overall portfolio volatility. Private equity, a specific alternative, offers higher risk-adjusted returns compared to public equity, especially in volatile markets. Since most holdings in a private equity fund are of private companies (or those on the verge of becoming private), the returns of these funds are distinct from the overall stock market's performance. Ironically, when the stock market experiences a significant decline, it becomes advantageous for most private equity funds, as they can acquire companies at lower prices to turn them around. Alternatives often involve investments in illiquid assets with extended investment horizons, allowing managers to unlock potential value and generate substantial returns over time. Real estate, especially commercial real estate, acts as an inflation hedge. Rental income and property values typically rise alongside inflation, safeguarding against diminished purchasing power. Commodities, such as gold and oil (which also has income tax benefits), are generally viewed as inflation hedges. Their prices usually increase during inflationary periods, preserving investment value. Some alternative assets, like infrastructure, gain from inflation. As prices rise, the value of infrastructure projects, such as toll roads and utilities, increases, potentially fostering growth. Private credit offers a steady income stream through non-publicly traded debt securities investments. These investments present higher yields than traditional bonds, making them an appealing option for income-focused portfolios. Real estate investments, including rental properties, (DSTs) with cash if a 1031 exchange is impractical, or real estate investment trusts (REITs), can produce regular income through rental payments. This can serve as a valuable source of passive income for individuals seeking a stable and predictable return. And since these investments typically have a lock up period and are not public, there is little (if any) stock market exposure or stock market risk. Dividend-paying alternatives, such as certain infrastructure projects, can provide consistent income through dividends. These dividends can yield a regular income stream and potentially grow over time. Investors considering allocating some capital to alternatives need to follow some common sense guidelines. Investors need to evaluate risk tolerance before allocating to alternatives, selecting investments that match their individual comfort levels. This ensures the chosen alternatives align with their investment objectives and risk profiles. The time frame for an investment is vital when considering alternatives. Some alternatives, such as private equity and real estate development deals, have a longer investment horizon and may be less suitable for short-term investors. Alternatives can be customized to meet specific goals, whether it's generating income, preserving wealth, or pursuing growth. Alternative investments provide a compelling opportunity to maximize diversification in portfolios, enhance resilience, and potentially yield higher returns. By thoughtfully selecting and managing these investments, advisors can help clients navigate market volatility and achieve their long-term financial goals, including maximizing income using alternative investments.
