Please note that the following answer only applies to clients of our Broker offering residing in Germany.

Private markets offer diversification and additional potential for above-average capital growth.

  • Diversification: Investing in private markets via ELTIFs can offer the possibility of diversification within a larger portfolio, as they allow access to asset classes that are not available in traditional markets, thereby broadening the investment universe and allowing further dispersion of associated risks.
  • Value creation: To counteract persistent macroeconomic factors such as changing interest rates, inflation and geopolitical risks, ELTIFs focus on long-term value creation and capital appreciation. Through, inter alia, careful investment analysis combined with a disciplined and scalable active investment approach, often acquired through years of experience, ELTIFs generally seek to generate attractive excess returns.

Details on Private Equity:

Globally, the vast majority (88%) of companies with a turnover of more than 100 million US dollars is privately held - hence not listed.¹ Making these companies investable creates a huge new investment universe that could continue to grow in the coming years, as the share of listed companies has been continuously declining for two decades. In Europe, the number of listed companies has fallen by almost 23% since 2009, while the number of private companies has risen by over 17%.²

Accordingly, the demand for private equity is increasing, as the asset class offers suitable investors additional investment opportunities to diversify their portfolio with high return potential. For investors who have a long investment horizon, not needing to access their money in the short term and with the corresponding risk capacity, private equity has achieved 14.9% annual growth in US dollars over the past 20 years - outperforming the popular MSCI World Index.³ Private equity is considered an essential asset class by professional investors such as family offices, not only for these reasons.

Interested parties can from now on sign up without obligation to a waiting list to receive regular updates until the planned start in April. They will also receive information on private markets investments and be the first to find out when the BlackRock Private Equity Fund will be available in the Scalable Broker.

Investments involve risks. Liquidity restrictions apply. Consider specific product information.

¹ Capital IQ, Status: 31 December 2023. Number of global companies with an annual turnover of more than 100 million US dollars.
² The World Bank: Listed domestic companies in the EU data from 2020 as of 1 December 2023, Eurostat: Business demography of the business population from 2020 as of 1 December 2023.
³ Burgiss as of 30. September 2024. Private Equity Investments are represented by the Burgiss Private Equity Index (Buyouts). Private equity funds (investing in established markets) only (Number of funds 1,976). Bloomberg as of 30. September 2024. MSCI World Index captures large and mid-cap representation across 23 developed countries. Past returns are not a reliable indicator for future performance.