Commitment Matters:
Investing in illiquid assets is a bit like “putting a ring on it.” As one of the world’s most respected investors once said, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” This long-term mindset is at the heart of successful investing.
Lower Cost of Capital:
A disciplined investment approach opens doors to new opportunities, the more AIFs can leverage integrated European capital markets the more efficient capital deployment—ultimately resulting in a lower cost of capital.
Liquidity Matching:
It’s essential to align investment structures with the underlying asset liquidity. While including more specialized assets can add complexity to return profiles, even sophisticated investors like family offices may face challenges in assessing exit opportunities.
It was a pleasure to share the investor perspective with Christine Panier yesterday, adeptly prepared and moderated by Charly Guyot. Many thanks to Sabrina EL ABBADI and Yasmine Din for making this exchange possible!
About the event
Organised by the ILA Alternative Investment Funds Committee, the event brought together leading experts to explore the implications of retail AIFs—funds that invest in illiquid assets and are marketed to retail investors.
About ILA
With over 3’000 members, the Luxembourg multi-industry association, ILA is the voice of governance as well as an ambassador for Luxembourg as a strong business location for good governance. ILA plays a crucial role in defining and promoting conscious, good and sustainable governance in Luxembourg. To achieve this, ILA offers training and certification courses, produces studies on relevant topics and supports its members through networking activities, advocacy and access to relevant governance resources.
About BNP Paribas Security Services
As the fifth-largest global custodian with over USD 13.6 trillion assets under custody, BNP Paribas’ Securities Services is the #1 European global custodian with a strong presence in Asia Pacific and Latin America, and, in 2012, it expanded its business in the world’s largest capital market – the US. We are a multi-asset servicing specialist committed to helping our clients achieve their investment and cross-border distribution ambitions.