UK private market fund managers believe SIPPs will play a major role in expanding sophisticated and high-net-worth investor participation in private markets over the next five years, according to new research from Wealth Club.
The study found that 85% of private market fund managers believe increasing access to private market investments through SIPPs will have a positive impact on investor participation over the next five years. Almost one in four (24%) believe the impact will be very positive.
That optimism is already translating into product development. More than three-quarters (77%) of private market fund managers say they are likely to develop products specifically for investors using SIPPs over the next five years, with just 3% ruling it out altogether.
The research also highlights growing support for other tax-efficient wrappers. Around three-quarters (74%) of fund managers are likely to develop products suitable for ISAs over the next five years although some continue to cite the UK’s unique regulatory framework as a barrier to adoption.
“The UK’s SIPP market represents one of the biggest long-term growth opportunities for private markets. It’s encouraging to see that fund managers clearly recognise that, with the overwhelming majority expecting SIPPs to play an increasingly important role in opening up private markets to sophisticated investors.
“For most individual investors, private markets have historically been largely out of reach. While investment trusts and other specialist vehicles have provided some access, many of the world’s leading private equity, private credit and infrastructure managers were simply unavailable, while traditional private market funds often required very large minimum commitments and complex capital call structures.
“Semi-liquid funds are changing that. They are opening up access to a much broader range of managers and strategies and removing many of the practical barriers that have held investors back in the past. They also remove the discount and premium volatility associated with listed investment trusts, allowing investors to focus on the performance of the underlying assets.
“The combination of semi-liquid fund structures and SIPPs has the potential to transform access to private markets for sophisticated investors. As more managers launch suitable products, investors will have access to an increasingly broad range of institutional private market strategies within a tax-efficient pension wrapper.”
Alex Davies, Founder and CEO of Wealth Club, said:
Wealth Club, which launched the UK’s first Private Funds Supermarket in November 2024, is growing rapidly as interest in private markets among sophisticated and high-net-worth investors continues to increase. The platform now offers 22 funds from 18 leading private markets managers and earlier this year launched the UK’s first dedicated Private Markets SIPP, enabling investors to access a wide range of semi-liquid private market funds from as little as £10,000.
This growth is being driven by rising interest from both investors and fund managers, reflecting growing demand for private market investments and the increasing popularity of semi-liquid fund structures.