Private markets - UBS guest lecturer

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来自 University of Geneva 的课程

Understanding Financial Markets

1877 个评分

University of Geneva

Understanding Financial Markets

1877 个评分

课程 1（共 5 门，Specialization 投资管理）

In this course, you will learn what the main financial markets and their characteristics are as well as how they are linked to the economy. Our very diversified team of experts will start by teaching you how the price of stocks and bonds are computed and why they move while you will become increasingly aware of the notion of risk and why it matters when measuring an investment's performance. The focus will then move to less popular markets such as gold, emerging markets, real estate, hedge funds and private markets. These will be analyzed with an emphasis on their particular risks and return opportunities as well as how they can help in building efficient portfolios. Finally, the policies of central banks and their impact on financial markets will be presented to you along with the link between the economy and the price of financial assets. All along these different steps, experts from UBS, our corporate partner, will show you how the concepts you just acquired are effectively applied in a leading global bank. This focus on practicality means you will not only understand what is going on in global financial markets but also start to figure out how you can use them to achieve financial goals, be it a client's or your own.

从本节课中

Other Financial Markets

Real estate - Part 15:46

Real estate - Part 27:59

Hedge funds: definition and origins - Part 15:33

Hedge funds: definition and origins - Part 26:03

Hedge funds: definition and origins - Part 36:41

Hedge funds: going long… or short?8:47

Private markets - UBS guest lecturer4:23

与讲师见面

University of Geneva- Ines Chaieb
SFI Associate Professor of Finance
Geneva Finance Research Institute
University of Geneva- Jonas Demaurex
Teaching Assistant
Geneva Finance Research Institute
University of Geneva- Rajna Gibson Brandon
SFI Senior Chaired Professor of Finance and Managing Director of the GFRI
Geneva Finance Research Institute
University of Geneva- Michel Girardin
Lecturer in Macro-Finance - Project Leader for the "Investment Management" specialization
Geneva Finance Research Institute
University of Geneva- Martin Hoesli
Professor of Real estate investments
Geneva Finance Research Institute
University of Geneva- Olivier Scaillet
SFI Senior Chaired Professor of Finance and Vice-dean (research) at GSEM
Geneva Finance Research Institute
University of Geneva- Philip Valta
SFI Assistant Professor of Finance
Geneva Finance Research Institute
Dirk Effenberger
UBS Guest Lecturer, Head CIO Cross-Regional Investment Office
Chief Investment Office, UBS Wealth Management
Mark Haefele
UBS Guest Lecturer, Global Chief Investment Officer
Wealth Management and Wealth Management Americas
Brian Nick
UBS Guest Lecturer, Strategist
Chief Investment Office, UBS Wealth Management Americas
Mike Ryan
UBS Guest Lecturer, Chief Investment Strategist
Chief Investment Office, UBS Wealth Management Americas
Simon Smiles
UBS Guest Lecturer, Chief Investment Officer UHNW
Chief Investment Office, UBS Wealth Management
Themis Themistocleous
UBS Guest Lecturer, Head European Investment Office
Chief Investment Office, UBS Wealth Management
Thomas Wacker
UBS Guest Lecturer, Head CIO Credit
Chief Investment Office, UBS Wealth Management
Chris Wright
UBS Guest Lecturer, Cross-Asset Strategist
Chief Investment Office, UBS Wealth Management
University of Geneva- Tony Berrada
SFI Associate Professor of Finance
Geneva Finance Research Institute

[MUSIC]

>> I'm Chris Wright, a cross-asset strategist in the Chief Investment Office

of UBS Wealth Management.

In this video, I want to answer three questions.

What are private market investments?

How do they differ from public markets?

And what are the benefits and

considerations from investing in private markets?

So, what are private market investments?

Let's take a simple example.

You give $10,000 to a friend to open a clothes store, and

in return they gave you a 10% equity stake in the company.

This would entitle you to a share of the profits, and

also any proceeds if the company was to be sold.

This would be called a private equity investment

because it's a private transaction between you and your friends, and

in return you receive equity in the company.

A professional private equity investors would tend to take this

relationship a step further and

take an active role in running the company, maybe sitting on the board of

directors to increase the likelihood that their investment increases in value.

And this is the most common type of private market investment.

Other types would include private loans.

So, using our same example, if you were to loan the money to your friend

to open the clothes store, you'd receive a specified rate of return

regardless of whether the company actually made a profit or not.

And another example could be physical assets.

This could be a property, a factory, some land, a machine perhaps.

And the strategy here would be to either renovate or improve the asset

to later sell it on at a profit, or to rent it out and receive an income.

So, how are these investments different from public market investments?

The key difference is that public companies are traded on exchanges

like the London and New York stock exchange.

And in order for a company to be traded on one of these public exchanges,

they must fulfill certain criteria, the most important of these being the need to

publicly disclose financial accounts and regularly report their earnings.

Another difference is the size and the stage of the companies.

Now, private companies can, of course, be any size.

But they do tend to be smaller companies that can't access financial markets.

Taking our clothes shop, for

example, your friend could not walk on to the floor of the London stock exchange,

give some hand signals, and sell their company to some traders.

Instead, if they needed to raise some investment, they would need to go out and

pursue that privately.

And so, what are the benefits and the considerations for

investing in private markets?

One of the main advantages of investing in private markets is the potential for

higher rates of return which results from investing in companies that tend to be at

an earlier stage of their development, or where their success is highly uncertain.

It is for this reason that exceptionally successful companies that go on to be

valued at over $1 billion are called unicorns.

They're very, very rare.

However, therein lies the biggest risk of investing in private markets,

that this uncertainty makes finding these winners far, far harder.

And it's for this reason that we strongly recommend that private market investors

don't commit all their capital to just a single investment, but

actually diversify by investing in a wide range of opportunities.

Another consideration that private market investors must make

is the lack of liquidity for their investments.

If, for example, you were to invest $10,000 in an S&P 500 company,

you could sell this back to the public market in a fraction of a second.

However, if you wanted to sell your $10,000 stake in your friend's clothes

store, it could take you weeks or even months to find another buyer.

Now, despite these risks, at UBS we strongly believe that private market

investments should have a place in portfolios for the simple reason that

they can offer a very different source of return to that found in public markets.

So, when considering a portfolio that already has some public equity and

bond investments, an allocation to private markets can increase the return of

a portfolio while at the same time lowering the overall level of risk.

I think you'll agree this is a very nice proposition.

Thank you.

[MUSIC]

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