Trade Republic Private Markets

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candyman

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Trade republic have just launched a new asset class called Private Markets, giving you the ability to invest in non stock exchange listed companies (hence the private part) via the Apollo and EQT funds.

Their in app explainer marketing does nothing for me - watching a guy eating a fancy meal while explaining what the product is - just smacks to me but leaving that aside, just wondering what are people's thoughts on this new product?

They are claiming a 12% p.a return which is another red flag to me (too good to be true possibly). Also offering a 1% bonus in the first 30 days - if you invest 10k, they will credit you with €100 of the same stock, however you must not sell it for 2 years or they will claw it back.

The private companies you investing in are available under the investments section for EQT but only the sectors are called out for Apollo.
 
In one sense they are democratising private equity, normally only available to high-net-worth investors and institutions who can afford to lock up large sums for 10+ years at a time. These funds have effectively no minimum investment amount, and the possibility to sell each month.

But be aware of the fees, in the Key Info document Apollo has an eye-watering 4.5% annual charge (2.5% for EQT).

And you're not directly investing in private companies, you are investing in an actively-managed fund that invests in private companies, so all the usual exit tax/deemed disposal considerations apply.
 
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See also this thread:

Shuttle - Private Equity, Venture Capital

Just wondering what peoples thoughts on shuttle.com are ...https://joinshuttle.com/ Is anyone here a member? What do you think of the platform etc? The idea does appeal to me, they are regulated by the central bank of Ireland.... But I cant help feeling I would be way outside my admittedly...
www.askaboutmoney.com
Private equity is almost certainly not an appropriate/prudent investment for most people on a forum like this in my (and others') opinion.
 
I think in general, retail investors are being used for exit liquidity in these markets. It's high risk, high fees, opaque pricing, and the market is richly priced. All reasons to be wary.
 
Private Equity firms haven't suddenly decided "we're making too much money, how can we share the wealth with the average pleb" and set up ways they can market to the general public. The reality is they're sitting on hundreds of billions of rubbish they've invested in over the last decade or so and are trying to dump as much of it as possible before any potential downturn.
 
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