This information is intended for high net worth and professional investors only. These funds have a very high risk and you could lose all the money you invest.

Private markets have gained significant attention from investors keen to diversify beyond equities and bonds. At Prosper, our mission is to simplify access to these markets for high-net-worth individuals, making a traditionally complex and opaque process more transparent and navigable. The shift to private markets can be measured in the substantial growth of these assets under management, which reached $11.7 trillion as of June 30, 2022, reflecting an annual growth rate of nearly 20% since 2017 (source: McKinsey’s Global Private Markets Review 2023). However, not all of this will be in the hands of private individuals.

The truth is that the number of publicly listed companies has been declining over the past two decades. For instance, in the US, the number of listed companies has decreased by 50% over the last 20 years and so investors are quite rightly looking to be part of a growing sector that includes so many of the world’s most innovative companies.

Traditionally, access to private market investments was facilitated through private banks and family offices. However, recent developments have broadened this access. For example, the UK's Financial Conduct Authority is launching the Private Intermittent Securities and Capital Exchange System (PISCES) in May 2025, aiming to create a regulated secondary market for private share trading. This initiative seeks to provide investment opportunities in fast-growing UK companies, enhancing liquidity and access for qualified investors.

Investing in private markets often involves various fees, including management fees and performance-based fees, commonly known as carried interest. It's crucial for investors to understand these fee structures, as they can impact overall returns. We recommend thorough due diligence and consultation with financial advisors to fully comprehend the cost implications of such investments.

While private markets can offer attractive opportunities, it's essential to balance enthusiasm with caution. Investments in these markets are typically characterised by illiquidity, long lock-up periods, and the potential for capital loss. Therefore, they may not be suitable for all investors. A comprehensive assessment of one's financial situation and investment objectives is vital before considering such investments.

Private markets present a compelling avenue for portfolio diversification and potential returns. However, it's imperative to approach these opportunities with a well-informed perspective, acknowledging both the potential benefits and inherent risks. At Prosper, we are committed to providing transparent information and personalised guidance to help you navigate the complexities of private market investments.