Private Markets

Investing in Private Markets involves debt and equity instruments that are not publicly traded. In other words, you invest in or lend money to companies or projects that are not listed on a stock exchange. The sectors these businesses operate in vary widely - from biotech to infrastructure, from advanced software to the development of new medicines. 

In Private Equity, this doesn’t just include startups and scaleups, but also more mature businesses that aim to grow with the capital and expertise of a private equity investor - think entering new markets or acquiring other companies.

Private Markets may be suitable for informed ING Luxembourg Private Banking clients who seek long-term capital growth, have sufficient knowledge and experience to understand Private Markets investments, can accept a high level of risk and limited liquidity, can bear the loss of their entire investment, and understand that these investments may involve significant costs and fees that can affect their returns. Access is subject to an individual eligibility and suitability assessment and is available only through investment advice under a dedicated Private Markets Advisory Mandate.

Private Equity funds invest in private companies with the aim of increasing their value over time. As an investor in such a fund, you participate in the potential value created by the fund’s investment activities. 

The fund manager works closely with the companies in the portfolio to help them grow and improve their performance. The goal is to create value during the ownership period and then eventually sell the shares. This can be done either by selling (to another investor, for instance) or by taking the company public (IPO). 

At the time of exit, investors may generate a gain or a loss depending on the performance of the underlying investment. 

At ING, you may invest in semi-liquid evergreen (i.e. without a fixed end date) funds managed by external fund managers. These funds invest in private companies and other Private Markets opportunities. They generally aim to deploy subscription amounts shortly after investment, subject to market conditions, available investment opportunities and the fund's investment process.

Private Markets investments may involve significant costs and fees, which can reduce your investment returns. These may include management fees, performance-related fees and, depending on the fund and circumstances, costs associated with subscriptions or redemptions. The applicable costs and charges vary by fund and are detailed in the relevant fund documentation and information provided to you before investing.

Private Markets investments are complex and involve high risks. You may lose part or all of your invested capital. The value of your investment may fluctuate. 

Private Markets funds are not freely tradable. At ING, you can invest through semi-liquid evergreen funds. This typically means you can invest monthly and redeem quarterly (subject to conditions). Each period, a redemption limit applies. If there are many redemption requests, your request may only be partially executed. Or it may be deferred to a subsequent period. In times of market stress, this may continue for multiple periods. As a result, you might not be able to sell immediately, should you want to at some point.

Partly due to their limited liquidity, Private Markets funds are not suitable for the short term. Fund managers need time to create value. A long investment horizon is therefore essential.

Private Markets funds often use complex structures and instruments. Less information is available than in public markets which can make their risks and valuation more difficult to assess. Additional risks to consider include the use of leverage, performance incentives for higher-risk investments, valuation fluctuations, concentration risk, credit risks and operational risks.