It's Getting Easier to Invest in Private Assets. What Does That Mean for Investors?

This Investing Insights podcast episode interviews Jack Shannon, a Morningstar Research Analyst, about private assets and their increasing availability to retail investors. The episode begins by defining private assets and outlining their key risks, primarily the lack of disclosure and liquidity compared to public assets. It then explores why fund companies are interested in offering private assets to retail investors, focusing on the potential for higher returns despite the risks. Several options for retail investors to access private assets are discussed, including mutual funds, closed-end funds (ETFs and interval funds), and business development companies (BDCs), with a detailed comparison of their liquidity and potential returns. Finally, the interview concludes with a discussion of the challenges and future developments expected in this area, highlighting the greater potential for growth in private credit compared to private equity investments.