Merryn Talks Money Markets Round Up: Private Equity, ISAs, Rachel Reeves
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May 14, 2025 Explore the latest market dynamics and the call for pension funds to boost their investment in private equity. Dive into the potential restructuring of ISA allowances and its impact on the IPO market. Uncover the hidden costs associated with holding cash instead of investing and the wealth individuals might be missing out on. The conversation wraps up with a dose of skepticism about recent trends and highlights the importance of savvy financial planning.
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Pension Funds' Private Asset Targets
- Rachel Reeves proposes pension funds target 10% in private assets and 5% in UK private assets by decade-end.
- This includes unlisted companies, private equity, and infrastructure investments.
Private Equity's Changing Landscape
- Private equity's past outperformance is tied to cheap debt and less competition years ago.
- Today, higher rates and massive competition challenge private equity’s future returns.
Low Current Private Asset Holdings
- UK pension funds currently hold under 2% in private assets generally.
- The push to invest 10% more means a big new demand for UK private assets or infrastructure.