A new investment opportunity, or snake oil salesmen?

This month I want to offer a primer on the topic of what are loosely called ‘private equity’ and ‘private credit’. 

These terms describe rather generally forms of investment that do not fit easily within the framework of existing UK legislation and regulation for retail investors but which forms of investment are currently available to retail investors indirectly, by being included in the assets of products we recognise like pension funds and investment trusts, and which may become more widely available in the near future..

There is definitely something building by way of a story or even a campaign, with vested interests acting a cheerleaders, which narrative might be summarised as suggesting that this form of asset is the new ‘next great opportunity’ and retail investors ought not to be locked out of such a great opportunity by the ‘nanny state’.

As an indication of how the subject is highly topical, especially in the USA, I would refer you to a very recent comment from a Goldman Sachs AM spokesman saying that he could “even see a world where we stop using the phrase public and private; we just say great companies or great credit”.

Now that sounds like a salesman pushing a new product line to the sceptic in me.   Such is the general tone of the trade media coverage I am seeing.