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Wealthsimple Launches Private Equity Fund for Retail Investors

Nov 23, 2023

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Wealthsimple has recently launched a private equity fund with investment opportunities for retail investors.

Wealthsimple's new private equity fund is managed by LGT Capital Partners, part of the Liechtenstein royal family’s wealth management group, and represents its third private asset product. This move aligns with a growing trend among fund managers to make private investments more accessible to retail investors.

See:  Retail Investors to Drive Growth in Private Assets Under Management Expected to Reach $18.3 Trillion by 2027

Since its inception in 2014, Wealthsimple has evolved from an investment platform to a comprehensive FinTech solution, offering services in spending, saving, cryptocurrency, taxes, and peer-to-peer payments.

Fund Overview

  • The fund is open-ended, allowing for quarterly redemptions up to a limit of 5% of the fund's assets.
  • It carries a management fee of 1.5%, with a 12.5% performance fee, applicable after an 8% hurdle.
  • The fund aims to invest in secondaries at market value discounts and in new companies, offering potential for higher returns.

See:  AngelList, the renowned platform for startups and investors, broadens its horizons by venturing into the private equity space through the acquisition of fintech startup Nova.

  • Available exclusively to Wealthsimple clients with a minimum of $100,000 in deposits and a $10,000 minimum investment.  Interested investors must be suitable for a long-term investment focus and the ability to handle the fund's relative illiquidity.  They must complete a suitability survey and consult with a portfolio manager to determine allocation.
  • Over the past 22 years, private equity has outperformed public markets by an average of 4.75% annually.

Conclusion

Wealthsimple's private equity fund represents a significant step in democratizing access to private market investments for retail investors. With its strategic partnership, diversified approach, and focus on long-term wealth building, this fund offers a unique opportunity for qualified investors to enhance their portfolios.


NCFA Jan 2018 resize - Wealthsimple Launches Private Equity Fund for Retail InvestorsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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