Alternative asset managers are gaining traction with Europe’s wealthy investors by offering more liquid investment options, reported Bloomberg.
Regulatory changes by the European Commission, including the removal of a €10,000 ($10,418) minimum investment requirement, have accelerated the adoption of these funds under the European Long-Term Investment Fund (ELTIF) regime, Bloomberg said. As a result, fund approvals have tripled, and assets in evergreen funds have surged by 26 percent to €52.8 billion ($55 billion) within six months.
Wealth managers and major investment firms like Blackstone and BlackRock have been targeting retail investors amid constraints on institutional capital allocation to private assets. Concerns are emerging, however, over the liquidity risks of these funds, as redemption pressures during marke