Private Markets
Hold no secret
Around the turn of the millennium, trying to talk about alternative investments and private markets to the managers responsible for asset allocation in their own books at German regional banks was difficult and often met with a lack of understanding or even principled objections. Today, however, private markets are part of the fixed canon of capital allocation for most of the larger institutions. A survey carried out by the CFIN Research Center for Financial Services in Munich forecasts that alternative investments will account for 12 per cent of the assets held by domestic German banks in their own books by the year 2025, rising to 16 per cent in 2030. This would represent twice the figure for 2021, the year the survey was performed.
In his article, CIO Dr Matthias Reicherter describes the development of private markets over the last 24 years: Strategies have evolved from the 2000s, starting with portfolio funds to secondaries in the 2010s and co-investments in the 2020s.
