Talking Point  

Guide to private markets and LTAFs

  • To be able to explain the pros and cons of private markets
  • To be able to explain why the FCA has private markets in its sight
  • To be able to explain the role of private markets in a portfolio
CPD
Approx.60min
Guide to private markets and LTAFs
(Chris Ratcliffe/Bloomberg/FTA Montage)

Introduction

In 2023 the Financial Conduct Authority set out new rules to give retail investors and more defined contribution pension schemes access to long-term asset funds.

As the market is predicted grow sizeably, the FCA undertaking a review into private market valuations.

With private markets typically having less liquidity than more traditional assets, they might not be for everybody, but they will still have a role to play in a portfolio.

This guide, which is worth 60 minutes of CPD, will explore the pros and cons of private markets, why the FCA is increasingly interested in probing this market, and the type of investor that suits private markets.

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What are the pros and cons of LTAFs?

  2. Why does George Fowler say that private equity or venture capital might be more appropriate for younger investors?

  3. True or false? LTAFs are a new type of FCA-authorised open-ended fund specifically designed to facilitate investment in short-term and more liquid assets.

  4. Why does Ben Leach say that private credit could work for investors with a mature portfolio who are looking to generate income and yield?

  5. According to investment managers, what role can private markets play in a portfolio?

  6. What does Mark Watts say has prompted the FCA’s review of valuation practices for private assets?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To be able to explain the pros and cons of private markets
  • To be able to explain why the FCA has private markets in its sight
  • To be able to explain the role of private markets in a portfolio

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