BT partners with Preqin to support adviser demand for education on private markets

Sydney, 14 August 2024: BT today announced a strategic educational partnership with Preqin, a global leader in alternative assets data, tools, and insights. The partnership will provide advisers with comprehensive resources and up-to-date research to enhance their understanding and expertise in the private markets sector, forming part of BT’s ongoing commitment to support financial advisers with continuing education.

Assets under management (AUM) in private markets tripled in Australia over the past decade, reaching $139bn as of December 2023. Globally, growth has been even stronger¹, driven by structural shifts in global capital markets, including fewer listed companies, fewer IPOs, and stricter post-GFC regulations, leading to more private lenders entering the market.²

Despite the growth of private markets and the resulting product innovation, which has made the sector more accessible to individual investors, comprehensive market research remains scarce. The partnership between BT and Preqin is a response to advisers’ demand for increased transparency and research on a rapidly growing, but traditionally opaque sector.

Stuart Cadzow, Head of Investment Product Solutions, BT, said: “Private markets were once considered the domain of institutional asset owners, but new products are increasingly available to private wealth investors. Once considered ‘alternatives’, we can see a time – as portfolios evolve – when private debt will be an extension of fixed income, real assets as an extension of listed property and infrastructure, and private equity as an extension of shares.

“We’re seeing an increasing demand for education from advisers, in line with growing client interest: the opportunities, risks and product structures are generally not as well understood as with listed assets. It’s crucial that advisers understand the role these sub-asset classes play in their clients’ portfolios, including product features which can impact performance, liquidity, and fees.”

Available on BT Academy, the educational materials and research are among the most up-to-date and comprehensive on private markets which are readily available to the advice profession. Curated by Preqin’s expert analysts and researchers, the materials cover private equity, private debt, infrastructure, property, and natural resources. Each learning module includes an assessment to test users’ knowledge and allow advisers to earn continuing professional development (CPD) points. Advisers who use BT’s platforms will also have access to a select number of Preqin Insights+ reports, including historical performance data, detailed analysis on specific asset classes and macro factors influencing returns, investor sentiment, and industry trends.

Mr Cadzow said: “As BT has the largest number of adviser relationships in the Australian market,³ we have the necessary reach to make an impact, and improve access to information that advisers need. We identified a clear education gap in the private markets space, and so have sought to empower advisers with market-leading research and education, so they can help clients make better strategic investment decisions.

“Our partnership with Preqin is the first step in BT’s commitment to supporting advisers with private market education and product access. BT sees the sector as an increasingly relevant part of clients’ portfolio construction going forward.”

According to Preqin, three out of the five largest super funds in Australia are allocating around 30% of assets under management to private capital. Globally and in Australia, private wealth investors typically allocate a much smaller fraction of their portfolio to private markets. “The next chapter in the evolving growth story of private markets will be at the individual level, with high-net-worth investors expected to increase their allocations over the next 10 years, as technology and product innovation enable greater accessibility,” said Cameron Joyce, Head of Research Insights, Preqin.

Mr Joyce continued: “More than 200,000 institutional and private wealth professionals globally leverage Preqin’s insights. We’re delighted to be able to share these insights with advisers who are using BT’s platforms.”

The educational materials and research are on BT Academy: https://www.bt.com.au/professional/knowledge-centre/client-strategies/guide-to-private-markets.html