Bite publishes white paper on case for private equity investments
Fintech company Bite Investments has published a white paper that “presents a strong case for private equity investments and important factors for success”
The alternatives investment platform provides high-net-worth investors access to alternative asset funds and their underlying, direct co-investment opportunities in smaller-sized amounts.
Bite Investments, which has a partnership with Bermudian-founded Apex Group, believes the paper will help potential investors in Bermuda, and elsewhere, to see what opportunities are available.
The paper is titled “Private Equity: A Growing Opportunity for HNW Investors,” and shares data on steady growth of the private equity market “driven by high returns and increasing investor sophistication”.
William Rudebeck, chief executive officer of Bite, cited industry projections that by 2024 global private equity assets under management is forecast to reach $6.4 trillion.
He said: “There is considerable attention now focused on the private equity market. In an environment of high volatility, private equity has performed well and is forecast to continue its climb over the next few years as more HNW [high net worth] individuals seek a greater ROI. Of course, capturing the growing opportunity in private equity depends on several key factors. At the top of the list are efficient, fully integrated technologies which deliver a seamless investment process from diligence, compliance and know your customer steps, to investment selection and monitoring.”
Mr Rudebeck emphasised the importance of inter-industry partnerships. “Leveraging private equity market conditions will also be a function of strategic alliances between fintech companies, wealth managers and other investment advisers so that the optimum targeting of HNW investors can be achieved.”
The white paper includes a discussion of alternative investments and growth trajectory.
Bite believes financial professionals will find helpful a discussion on what is driving high net worth investors’ higher demand for private equity
Mr Rudebeck said: “Currently, only 40 per cent of wealth managers offer private equity investments. This is largely due to the due diligence requirements which are daunting even for experienced wealth managers who routinely must navigate matters of regulatory compliance.
“Another obstacle has been the high minimum investment sizes needed to gain access which are beyond the majority of HNW investors. This, coupled with the long lock-up periods, has made alternatives less attractive. At Bite, we have built our entire business model on addressing all of these challenges head-on.”