Investment firm Quintet Private Bank incorporates exclusive market assets within client investment portfolios.
In a significant move, Quintet Private Bank has integrated exposure to private markets into client portfolios, offering diversified investment opportunities through alternative assets such as private equity, private credit, and real assets. This integration is part of a broader trend in the financial industry, driven by growing demand from investors and regulatory changes.
The bank's enhanced portfolio management approach was developed in collaboration with global asset manager BlackRock, leveraging the latter's expertise to offer sophisticated investment strategies. This partnership is part of a broader industry trend to expand access to private markets, with BlackRock also making moves to integrate private investments into 401(k) retirement plans.
The integration of private markets is facilitated by the European Long-Term Investment Funds (ELTIF 2.0) framework, which entered into application last year. This regulatory framework reduces liquidity and operational constraints, allowing for continuous capital raising, reinvestment, and flexible redemptions. As a result, investors can access private markets with simplicity and efficiency, similar to traditional public markets. However, Quintet emphasizes that private markets still carry liquidity risks and require careful alignment with investors' financial goals and timelines.
Clients with relevant portfolios can access actively managed exposure to alternative assets, including private equity, private credit, and real assets via selected evergreen private markets funds. The offered private markets funds are complementing traditional allocations to equities, fixed income, and commodities, aiming to provide access to future-focused structural themes like digitalisation, demographics, and deglobalisation.
Bryan Crawford, group head of investment & client solutions at Quintet, has expressed delight at the integration of private markets exposure into client portfolios. He believes that this move encourages staying proactive with real-time data and expert analysis, ensuring that policy changes do not catch investors off guard.
Fabio Osta, head of BlackRock EMEA Wealth Alternatives Specialists Team, has stated that this integration makes investing in alternatives easier and more accessible. This announcement follows Quintet's launch of multi-manager UCITS funds last year, also co-designed with BlackRock.
Quintet's private markets offering includes BlackRock's private markets platform, which manages over €600bn in assets. Earlier this year, Quintet introduced Future+, a sustainable investment mandate developed with BlackRock, adhering to its environmental, social, and governance (ESG) principles.
In conclusion, Quintet Private Bank's integration of private markets into client portfolios, supported by the ELTIF 2.0 framework and a partnership with BlackRock, offers a more diversified investment strategy with potential for higher returns. However, investors must carefully consider the additional risks associated with private markets.
- Quintet Private Bank's new strategy, developed in partnership with BlackRock, aims to offer wealth management solutions that include investments in private markets like private equity, private credit, and real assets.
- The European Long-Term Investment Funds (ELTIF 2.0) framework facilitates the integration of private markets, providing simplicity and efficiency for investors.
- As part of a broader industry trend, Quintet's integration of private markets is accompanied by BlackRock's plans to include private investments in 401(k) retirement plans.
- Incorporating artificial intelligence and data analysis, Quintet's private markets offerings in business areas such as real-estate and private equity aim to remain proactive and adapt to policy changes, minimizing risks for investors.
