Results of Crystal Capital Partners Survey on Private Equity Sub-Strategies: Growth Equity Preferred by Financial Advisors

Crystal Capital Partners, a leading wealth-tech provider, has released the results of its survey on private equity sub-strategies, revealing some interesting trends in the industry. According to the survey, growth equity is the most popular sub-strategy among financial advisors, with a significant portion of clients showing interest in this investment approach.

The survey, which involved 45 independent financial advisors on Crystal’s platform, highlighted several key findings. While most advisors reported that only a small percentage of their clients were allocated to private equity strategies, growth equity stood out as a standout option. A notable 23% of advisors indicated that more than half of their clients were allocated to growth equity, reflecting a strong demand for this sub-strategy.

In contrast, buyouts were the least popular sub-strategy among clients, with a majority of advisors stating that less than 10% of their clients were allocated to this approach. Secondaries and venture capital showed mixed results, with some advisors having a significant portion of clients allocated to these strategies, while others reported lower interest levels.

Sector demand also played a role in shaping client preferences, with technology investments emerging as the most sought-after sector, followed by healthcare, energy, financial services, and consumer goods.

Factors driving demand for private equity investments varied, with high risk-adjusted returns, diversification benefits, longer-term investment horizons, and access to innovative companies being cited as key incentives for future allocations. However, the survey also highlighted a significant education gap among clients when it comes to understanding the differences between private equity sub-strategies, pointing to a need for more educational resources in the industry.

Steven Brod, Senior Partner, CEO, and CIO of Crystal Capital Partners, emphasized the importance of providing advisors with the tools and knowledge needed to navigate the complex private equity market. He noted that while growth equity strategies are gaining popularity, there is a clear need for advisors to work with trusted third parties to source top funds and create well-rounded private equity portfolios for their clients.

Overall, the survey sheds light on the evolving landscape of private equity investments and the growing interest among financial advisors in alternative strategies. As the demand for private markets continues to rise, advisors will need to stay informed and educated to meet the needs of their clients effectively.