The Swiss wealth giant is tapping Partners Group's expertise in private market investments. The two firms will team up on an offering not only intended for wealthy clients.
Zurich-based UBS is joining with Partners Group, a Zug-based asset management giant, on a private market offering for wealthy clients, the Swiss bank said in a statement on Friday. The offering is aimed at clients with at least 100,000 Swiss francs ($110,000) to invest in unlisted instruments.
The move represents the first time that such vehicles and securities were accessible outside of the segment of super-wealthy clients. Private equity and debt markets have flourished in recent years, with investors frustrated at the lack of yield in bond markets due to expansive monetary policy, as well as hesitant due to volatility in equity markets.
Funds for Affluent Clients
In contrast to listed markets, private investments tend to be difficult to access – middlemen like Partners are required – and illiquid. Until now, they have been dominated by so-called ultra-high net worth clients as well as institutional ones. The UBS-Partners Group tie-up targets an investment of up to $3 billion annually at first.
Partners Group is also to open private equity access to UBS clients – in the form of a fund structure made up of 30 to 60 investments. The initial investment for these funds is far lower – beginning at 20,000 francs.
