BT moves to plug private markets education gap

BT has inked a new partnership deal with UK investment data firm Preqin, giving one of Australia’s largest adviser cohorts the opportunity to upskill and patch knowledge gaps in the private markets space.

As part of the agreement, BT-linked financial advisers, via the BT Academy platform, will gain access to new educational resources and up-to-date research on the private markets sector, covering private equity, private debt, infrastructure, property, and natural resource.

Advisers on BT platforms will be provided access to select Preqin Insights+ reports, including historical performance data, asset class and macro investment analyses, investor sentiment, and industry trends.

Following completion of learning modules, advisers will also be able to test their newly acquired knowledge through an embedded assessment component, as well as earn continuing professional development (CPD) points.

Commenting on the new partnership, BT noted that, despite the growth of investment opportunities and interest in the asset class, up to now, comprehensive market research on the private markets has remained “scarce”.

“The partnership between BT and Preqin is a response to advisers’ demand for increased transparency and research on a rapidly growing, but traditionally opaque sector,” BT wrote in a statement.

BT’s head of investment product solutions Stuart Cadzow said the new partnership deal “is the first step” in the firm’s commitment to providing private market education and product access to its associated advisers – one of the largest adviser cohorts in the Australian market.

“BT sees the sector as an increasingly relevant part of clients’ portfolio construction going forward.”

Cadzow further noted the broadening appeal and opportunities available in private markets, and thus the importance of empowering advisers with the best knowledge to operate in this space.

“Private markets were once considered the domain of institutional asset owners, but new products are increasingly available to private wealth investors.

“Once considered ‘alternatives’, we can see a time – as portfolios evolve – when private debt will be an extension of fixed income, real assets as an extension of listed property and infrastructure, and private equity as an extension of shares.

He added: “We’re seeing an increasing demand for education from advisers, in line with growing client interest: the opportunities, risks and product structures are generally not as well understood as with listed assets.

“It’s crucial that advisers understand the role these sub-asset classes play in their clients’ portfolios, including product features which can impact performance, liquidity, and fees.”

Over the past decade, assets under management (AUM) in private markets tripled in Australia, reaching $139 billion as of December 2023.

Preqin notes that global growth in private markets investments “has been even stronger, driven by structural shifts in global capital markets, including fewer listed companies, fewer IPOs, and stricter post-GFC regulations, leading to more private lenders entering the market”.

Further, Preqin data shows that three out of the five largest super funds in Australia are allocating around 30% of assets under management to private capital; private wealth investors, however, typically allocate a much smaller fraction to the asset class.

“The next chapter in the evolving growth story of private markets will be at the individual level, with high-net-worth investors expected to increase their allocations over the next 10 years, as technology and product innovation enable greater accessibility,” concluded Preqin’s head of research insights Cameron Joyce.