Retail Investors May Soon Be Able To Tap Private Market Assets

MAS is seeking public feedback on a new framework it is looking to introduce

- Sheila Chiang

Retail investors in Singapore could soon be able to put money into private market investment funds under a new framework that the Monetary Authority of Singapore (MAS) is looking to introduce.

The framework, termed the Long-term Investment Fund (LIF), could potentially cover assets such as private equity—which are shares of unlisted companies—and private credit from non-bank lenders.

MAS is seeking public feedback on the proposed move, which it said is spurred by growing interest from retail investors in tapping private markets.

There is also more interest from experienced industry players in offering such products to retail investors.

"MAS has received feedback from market players in Singapore that there is potential for growth in this space, given interest from retail investors to include private market investments as part of their diversified investment portfolios," said the regulator in its consultation paper released on March 27.

Currently, retail investors can primarily buy funds that invest in public markets, such as listed shares and bonds. They have limited access to private market investments which are available to them only through authorized retail funds that are allowed to invest in certain alternative assets, such as unlisted shares, as well as real estate investment trusts (Reits) and unlisted property funds.

Retail investors can also invest in retail bonds backed by private equity, which are currently available in the market.