Accessing Private Markets: From Barriers to Solutions with iAccess Partners
An iAccess Partners Series: Episode 5/6
In our previous article, we explored the most significant barriers that have historically limited private investor access to Private Markets. This time, we turn from barriers to solutions – through the lens of iAccess Partners.
Through our turnkey Private Markets platform built for private wealth, iAccess Partners lowers entry thresholds, simplifies investment processes, and delivers a seamless route into Private Markets for qualified investors and their financial advisers. In this episode, we show how our solution addresses the traditional pain points identified in our previous article.
Key takeaways: Episode 5/6
1. Low minimum investment, reduced from millions to CHF 10-25k per investment.
2. Rigorous fund selection, tailored for private wealth.
3. Bankable structures (ISIN) - transferable and without capital calls.
4. Simple investment processes and granular performance reporting.
The iAccess Partners approach
At iAccess Partners, we believe Private Markets investments for individuals should meet institutional standards – but without the traditional frictions, hurdles, and complexities. We apply a rigorous selection process to identify leading Private Markets investments – then, we lower investment minimums, simplify investment structures, and streamline operations for private investors. As a result, private investors profit from high return potentials, minimized entry barriers, and increased transparency.
1. Lower minimums, real diversification
Traditional Private Markets funds often require commitments starting at CHF 5 million or more per fund. Achieving proper diversification has historically meant portfolios in the tens or even hundreds of millions – far beyond the reach of the vast majority of private investors.
By pooling investor commitments, iAccess Partners enables qualified investors to access individual Private Markets funds starting at CHF 10-25k per investment – making Private Markets accessible to a broader community beyond the ultra-wealthy.
The smaller entry tickets allow for diversification across managers, strategies, geographies, and vintages with a fraction of the historic capital requirement. For example, an investor who once needed CHF 50 million to build a portfolio of 10 funds can now achieve similar diversification with CHF 100-250k – while still accessing the same fund managers as institutional investors.
2. Rigorous fund selection, built for private wealth
Beyond lowering minimum investment thresholds, selecting globally leading funds is crucial to ensure that private investors can capitalize on the historical overperformance of Private Markets. We apply both quantitative and qualitative criteria to identify leading Private Markets funds with proven track records and a commitment to value creation. Through a three-step selection process (see figure 1), we identify global top-tier fund managers suitable for the private wealth segment.
1 Initial selection – Data & analytics: To build a granular fund data & analytics platform, iAccess Partners is continuously expanding its own Private Markets database - leveraging partnerships with leading Private Markets advisor Hamilton Lane and external placement agents. This ensures access to data on more than 60’000 funds to identify those matching our selection considerations. To identify leading funds, we evaluate a variety of metrics, including fund size (e.g., "how has the fund size grown over time?"), historical returns (e.g., "how has the fund performed historically?"), performance volatility (e.g., "how consistent was the fund’s performance?"), and team turnover (e.g., "how long have key decision makers been part of the fund's team?").
2 Core selection – Expert panels: After an initial pre-selection (phase 1), several dozen shortlisted funds are reviewed by our independent Advisory Board, composed of industry professionals with 20+ years experience each in Private Markets. Within our Advisory Board, we focus on distinct qualitative metrics, including the funds' sector expertise, operational capabilities, alignment of interest within the team, exit track record, strategic focus, and active value creation playbooks.
3 Final Selection – Partner Feedback: As a last step in our fund selection process, about 10 funds are proposed to our key distribution partners for final review. This step ensures the incorporation of market insights from our key clients: We consider specific client demands, internal due diligence topics, and current end investor trends - as well as other factors potentially impacting the funds' distribution (and investment) success.
3. Bankable, transferable investments
Even after the resource-intensive selection of top-tier funds, hurdles when investing in traditional Private Markets funds remain - particularly when it comes to the extensive, often paper-based investment process. To mitigate these complexities, iAccess Partners issues every investment as a bankable security with its own ISIN. To invest in a fund, investors can place an order for the ISIN through their securities account. This not only enables the integration of Private Markets investments into an investor’s existing financial portfolio, but also allows for transfers of investments between accounts, investors, or institutions.
Unlike traditional Private Market funds, our structures are free from capital calls – investors commit their full amount upfront, avoiding the administrative burden and liquidity planning challenges of drawdown structures with capital calls. For those investors who prefer traditional capital call mechanics, these can be arranged upon request. Our bankable, efficient investment structures have been applied to allocations into globally leading Private Markets funds - bringing institutional-grade investment strategies into a familiar, private-wealth-friendly format.
4. A streamlined, fully digital process
Investing in Private Markets should not be slowed down by outdated, paper-heavy processes. By removing friction points, our fully digital investment platform streamlines every step of the investor journey - from investor onboarding to performance reporting. This allows advisers to focus on client relationships and portfolio strategy, while giving investors clear, real-time portfolio visibility.
1 Efficient onboarding: Investors and wealth managers can easily register on the digital platform of iAccess Partners without complex paperwork and in a matter of minutes.
2 Granular fund information: Once on the platform, users receive access to detailed fund profiles, including historical track record, target returns, and key timelines. This thorough investment documentation enables investors and their advisors to make informed investment decisions.
3 Investment process: After a decision to invest into a fund is made, users simply sign the investment contracts on the digital platform and receive the ISIN after completing the process, ready to be purchased through their securities account.
4 Performance reporting: Once invested,iAccess Partners generates detailed performance reporting across four reporting levels (see figure 2). This multi-layered view gives investors and their advisers clarity at every granularity level.
Up next: Building your Private Markets portfolio
As private investor access to Private Markets is simplified through new, innovative solutions, the creation of financial portfolios which include Private Markets is becoming increasingly important. In the final episode of our series, we will look at the crucial role of Private Markets in portfolio construction and how qualified investors can position themselves for the decade ahead.
iAccess Partners and Hamilton Lane Announce Partnership
Zug, Switzerland and Pennsylvania, United States | November 2024
iAccess Partners is pleased to announce its partnership with Hamilton Lane, a global leader in private markets investment management. Initiated in November 2024, the collaboration is aimed at further optimizing iAccess Partners’ Private Markets fund selection capabilities.
Leveraging Hamilton Lane’s institutional analytics platform, Hamilton Lane Cobalt, iAccess Partners applies a data-driven, systematic approach to screening the global private markets universe. This quantitative foundation is complemented by in-depth qualitative due diligence and strategic input from financial institutions, ensuring a robust and multi-dimensional fund selection process.
The partnership reinforces iAccess Partners’ offering across both evergreen and closed-ended solutions, enabling private and institutional investors to access a curated portfolio of top-tier Private Equity and Private Debt funds via a streamlined, bankable structure.
