Investors 'do not understand' implications of private markets investing

House of Lords Financial Services Regulation Committee looked at the issues

Linus Uhlig
clock • 1 min read

Retail investors may not entirely grasp the implications of investing in private markets, members of the House of Lords have been told.

Ludovic Phalippou, professor of financial economics at the University of Oxford and Narine Lalafaryan, assistant professor of corporate law at the University of Cambridge, told the House of Lords Financial Services Regulation Committee that the relationship between private credit and private debt has become increasingly blurred.  "They invest in private credit without really knowing the risks," Philappou said when asked about the increasing investor base of private markets.  According to data from Moody's private credit asset under management will hit $3trn by 2028, an increase of aro...

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