Scalable Capital is introducing private equity investments to its digital investment platform for suitable investors in Germany, offering access to alternative investments like private equity through the Scalable Broker.
Clients can invest in the BlackRock Private Equity Fund with a minimum one-off investment of 10,000 euros, marking a significant step towards diversification and higher returns for long-term oriented investors.
Private companies, which make up the majority of large firms globally, provide a new investment opportunity as the number of listed companies decreases, leading to a shift in economic value creation towards private markets.
Private equity offers flexibility, long-term financing, and higher potential returns, with a 14.9% annual growth over the past 20 years, outperforming traditional indices like the MSCI World Index.
BlackRock's Private Equity Fund focuses on co-investments in private companies globally, offering lower costs, diversification, and the advantages of open-end fund structures for investors.
The fund allows easier redemption of invested capital compared to closed-end funds, and reinvests returns and dividends for potential higher compound interest and long-term returns.
Investors in alternative investments through Scalable Broker experience seamless integration, automated processes, and added functionalities like a digitalized suitability check and information resources.
The introduction of private equity as a new asset class in the Scalable Broker provides investors with the opportunity to access institutional-quality private market investments in a digital format.
Interested parties in Germany can join the waiting list to receive updates and be informed about private markets investments, with the BlackRock Private Equity Fund planned to be available in the Scalable Broker in April.
Redemptions from the fund are limited to 5% of the fund volume, with no front-end loads or redemption fees, while the management fee for the fund is set at 1.95% p.a., with the potential for additional performance-related profit share for the fund manager.