6 Things To Know About Private Market Investments

A look at these less liquid assets as MAS explores possibility of widening access to retail investors

- Chor Khieng Yuit

The sharp sell-off in global markets in early April – when the US S&P 500 dropped as much as 12 per cent and the Straits Times Index fell 14 per cent in just one week – was a stark reminder to investors of just how fluid public markets can be.

The conventional advice is to ride out the market gyrations, but how many investors can stay grounded and avoid panicking?

Ms Kerrine Koh, head of South-east Asia at Hamilton Lane, one of the world's biggest private market investment firms, said people do get emotional about how their investments are performing.

She added that investing in assets that are less liquid may protect these investors from making hasty decisions.

One example of such less liquid assets is private market investments, a group of alternative investments that are currently available to accredited investors, high-net-worth individuals and family offices.

The Monetary Authority of Singapore (MAS) is exploring the possibility of widening access to private market investments, which include private equity, private credit and infrastructure, to retail investors here.

The Straits Times takes a look at private market investments and finds out how suitable they are for retail investors.

WHAT ARE PRIVATE MARKET INVESTMENTS?

Private market investments are investments in private companies or companies that are not listed on a public exchange and hence not widely accessible to investors.

Some examples of privately held companies in Singapore include online car marketplace Carro and e-commerce platform Carousell. Ride-hailing and delivery company Grab Holdings and gaming and e-commerce company Sea are examples of private companies which subsequently listed in the US and became public companies.