LGT Wealth India

Private Markets

Public Equity & Debt Markets have been extremely volatile on account of several standalone events. Traditional asset classes such as public market equity and debt markets have shown an increasing level of correlation at the occurrence of such events. Further, we believe volatility, uncertainty, complexity, and ambiguity have become the new normal.

It has become far more important now to immune the portfolio from market volatility, thereby increasing the need for market independent products which have lower correlation and volatility, as compared to traditional asset classes. Such market independent products that have lower correlation and volatility, as compared to traditional asset classes, have shown to improve the risk-return profile of the portfolio in developed markets.

Today’s investors have the option to invest in private markets i.e. venture/private equity, venture debt/structured credit. However, not all investors have the similar access to private markets. Access is largely dependent on investors’ own network across the venture ecosystem. Many investors get trapped in the fallacy of investing in a ‘known person’ startup, rather than merit-based evaluation and end up taking an early-stage risk or a much higher risk which doesn’t commensurate with targeted returns.

We always recommend our investors to work with trusted financial advisors who can originate private deals for them based on their interests and help in evaluate all the investment opportunities. We bring some interesting bespoke ideas which have a validation from leading institutions who have a vintage 12-36 months in their investee companies and have invested in several past rounds and continue to invest more. They are hard to access opportunities and more importantly accessed through a right architecture where there is alignment of interest from all shareholders.