Unlocking Private Assets –
Evolution or Revolution?

For a number of years Private Assets has experienced significant growth and forecasts suggest this is a trend that will continue for the foreseeable future. However, things are changing, Private Assets are no longer the sole preserve of institutional investors, Private Asset are now part of the standard asset mix for Wealth Managers and pension funds. The introduction of ELTIF 2.0 should enable individuals to access Private Asset. The question is the pace of change will it be an evolution or a revolution.

For a number of years, Private Assets has experienced significant growth, and forecasts suggest this is a trend that will continue for the foreseeable future. However, things are changing, Private Assets are no longer the sole preserve of institutional investors, Private Asset are now part of the standard asset mix for Wealth Managers and pension funds. The introduction of ELTIF 2.0 should enable individuals to access Private Asset. The question is, will the pace of change be an evolution or a revolution?

The broadening scope of market participants can be attributed to a maturing Private Assets landscape. Regulations have provided certainty for investors and AIFMD II will further support this trend. The change in the investor mix is forcing Private Assets participants to embrace technology and to look at how efficiencies can be achieved in operating models. Clients are demanding better and faster service in terms of reporting, and regulators are demanding greater transparency and reporting.

We’ve identified six key trends poised to shape private asset activities in the near future:

Diversification of investor profiles, propelled by the Eltif 2.0 regulation aimed at catering to individual clients among others.
Escalating demand for digitalisation in operational processes, promising efficient support for investors on a larger scale.
Heightened emphasis on performance enhancement, as companies seek avenues to curtail costs and enrich customer experiences, often turning to technological solutions.
Emergence of AI’s impact on compliance, AML/KYC protocols, and operational frameworks.
Evolving regulatory landscape encompassing AIFMD II, DORA, and others.
Increasing significance of ESG reporting and frameworks in guiding investment decisions and practices.

“The fast changing landscape presents opportunities to lead the pack, whether that is in the early adoption of new technologies or in resilient reporting for clients and regulators. Identifying and implementing the correct solutions will bring competitive advantage in a crowded market place. ”

Junaed Kabir, Partner

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Parva approach

As a specialised Financial Services Consultancy, Parva brings extensive experience in crafting efficient operating models, selecting optimal technology and vendor solutions through rigorous RFI/RFP processes, and seamlessly implementing chosen solutions. Collaborating closely with our clients, we ensure the selection of solutions that best suit their present needs and future aspirations.

Our services include:

Growth Strategy & Evaluation:

Analysing growth opportunities and assessing market dynamics for expansion.

Market assessment:

Conducting in-depth market research to understand trends, competitive landscape & investment opportunities.

Governance and reporting:

Oversight
Risk and control
Regulatory reporting
Financial reporting
Client reporting.

Target operating model:

Optimising organisational structures.

Portfolio transition management:

Assisting with the transition of portfolios, especially during mergers or acquisitions & ensuring a smooth transfer of assets.

Operations & outsourcing:

Streamlining operational processes related to private asset management & evaluating outsourcing options.

Vendor & system selection:

Evaluating and managing vendors as well as identifying and selecting providers.

Impact of new regulations:

Navigating regulatory changes affecting private asset markets & advising on compliance adjustments.

Our expertise

Parva’s seasoned consultants bring a wealth of industry experience, having helmed global teams in both Asset Management and Asset Servicing. Their expertise spans an extensive range of asset classes, product types, technological solutions, and client demographics, reflecting a deep understanding of the field. With a track record of hands-on delivery, Parva’s consultants are adept at implementing effective solutions tailored to client needs.

Our team

Parva’s senior consultants have all worked in the industry, leading global teams across Asset Management and Asset Servicing. Their experience covers a broad and diverse scope of asset classes, product types, technology and vendor solutions and client geographies. Parva’s consultants have proven hands on knowledge of delivering solutions.

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