Private Markets (PM)

Private markets (PM) is the umbrella term for not publicly tradable investments like private equity, private debt, real estate and infrastructure projects. These investments were typically reserved to institutional investors or high-net-worth individuals only, but are now also available to retail investors via ELTIFs due to a regulatory overhaul by the European Union in early 2024. Private markets offer opportunities for higher returns and diversification but also involve higher risk and lower liquidity compared to public markets. Investors in private markets often need to commit capital for longer periods and may have limited opportunities to sell their investments before maturity.

Subgroups of private markets:

• Private equity: investments in private companies or the buy-out of public companies
• Private credit: lending money to private companies in return for interest payments
• Real estate: investments in residential, commercial or industrial properties
• Infrastructure: investments in physical assets such as roads, bridges or renewable energy installations