Investing in illiquid private assets

Over the past couple of decades, we've seen numerous scandals resulting from illiquid investment schemes. From spurious developments on remote islands to even regulated funds like Woodford, these scandals have caused immense pain for investors and posed serious regulatory risks for those who recommended them. When headlines promise a "guaranteed 12%pa return" on a case of whiskey, it's a definite red flag. but chasing a proposed return is attractive to some people who don't see it as too good to be true.

When we became authorised, the FCA specifically asked us about our stance on using unregulated collectives, which often are illiquid. Right from the start, we made it clear that we would not go down that path. Illiquid investments simply don't align with our target market. While there might be a case for illiquid investments with ultra-high-net-worth clients, the risks involved are too significant for us to consider.