Private equity has long been part of the standard repertoire of institutional investors. However, for private investors, the barriers to entry into the asset class are usually too high. Nao now wants to offer investments in private equity funds from €1,000 on the German market.
According to its own statements, the fintech company is the first provider on the German market to enable investments in a private equity fund starting at such a small sum – until now, there had been options for this via tokenization.
Read more about the fintech company NAo and find the most important business news of the day with the Born2Invest mobile app.
Co-investment approach facilitates access to UBS funds
This is made possible by a co-investment approach via the Nao platform: via this, private investors are to participate in a private equity secondaries fund managed by UBS. The Private Equity (LUX) Evergreen Secondary Fd EUR seeding-acc (ISIN LU2461279726) is accessible to semi-professional investors from a minimum investment amount of €50,000, Nao lowers the minimum investment amount to €1,000. Investors receive fractional shares of the fund booked directly into a custody account at Baader Bank. The net target return is 12 percent per annum. The semi-liquid fund can be sold on a quarterly basis.
“Private equity as an asset class has so far remained mostly closed to investors. Yet this asset class usually offers attractive double-digit returns and is well suited for portfolio diversification – regardless of the capital market,” says managing director and co-founder Robin Binder. In 2022, the 29-year-old founded the Berlin-based company. Previously, he spent several years advising larger medium-sized companies in the Stuttgart region for Hypovereinsbank and helped build a single-family office, among other things. Fintech Nao describes itself as a “digital family office.”
Access to private equity is becoming easier for private investors
In general, fintech companies and asset managers have made it easier to access private equity investments in recent years. Moonfare, for example, has long advertised making private equity available to retail investors through individual funds and funds of funds, even with lower minimum investments. The company RWB provides access to private equity funds starting at €5,000. The real asset and investment manager Wealthcap markets corresponding funds of funds specifically to private banking customers. Other fund-of-fund providers or private banks also entice customers with low entry barriers.
Funds under the Eltif regulation offer direct access or access via co-investments to private equity. The market for European Long Term Investment Funds has grown strongly in recent years. From 2024, under the new Eltif regulation, private investors will be able to participate in fund vehicles that invest away from the stock exchange without the minimum investment amount of €10,000 that has been applied to date.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in private banking magazin. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
What Is the Role of Fintech Companies in the Payments Ecosystem
The CEO of BIT2ME referred to the future of fintech as "good". However, he stated, "We live in a society...
UN Report Calls on Member States to Stop Criminalizing Drug Users
The report shows that a growing number of countries in all regions are adopting policies and practices that decriminalize drug...
Markets Heated Up This Past Week as Guidance from the Fed Was Bearish
The Fed left rates unchanged at this past week's meeting as expected but the guidance was hawkish. Markets didn't like...
Current Woes in Bonds Promise Future Grief for Stocks: Focus on Dow Jones
If you’re bullish, maybe you should lower your expectations of what the stock market can do for you in the...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Markets1 week ago
An Interesting Volatile Week for the Stock Markets
Fintech2 weeks ago
DeluPay Payment Method Comes with Fewer Commissions Paid by (e)-merchants
Biotech5 days ago
AbolerIS Pharma Closes a Round of €27 Million Led by Caixa Capital
Crypto2 weeks ago
BitBoy Crypto Ends Partnership with Youtuber Ben Armstrong