There is a pitch doing the rounds in Irish advice circles at the moment: private markets have finally been democratised, and private credit and private equity are now open to anyone with a decent pension pot. But is it really like that? In this episode, Paddy looks at what is actually being sold, and at the one feature that matters more than anything else in the brochure, because liquidity here is offered, not guaranteed.
Have a listen, if you'd like to get an idea of what these 'zombie funds' in the private markets sector are all about, what your ARF has to do with them, and what considerations there are regarding private loans and equity investments when it comes to your retirement planning.
What you'll learn:
- What an evergreen or semi-liquid fund actually is, and why a redemption window is nothing like selling a share
- Why the value on your statement can lag what is really happening in the underlying businesses by months
- What a zombie fund is, and why roughly 48% of the institutional investors surveyed by Coller Capital already hold one
- Why illiquid assets collide badly with ARF drawdown, where Revenue requires you to draw at least 4% a year from age 61
- The four questions to ask before you sign anything and what a vague answer actually tells you
None of this means private markets are wicked, or that nobody should ever own them. It means a bit of healthy scepticism is no bad thing. If you are approaching or already in retirement and someone has put one of these opportunities in front of you, this episode is for you.
🎙️ Full podcast episode and 📖 Blog: www.informeddecisions.ie/post/zombie-funds-private-markets-ireland
📊 Want to check where you are? Try our free 5-minute Retirement Readiness Scorecard: https://www.informeddecisions.ie/pension-calculator
📅 Find out how we work: https://www.informeddecisions.ie
DISCLAIMER This content is for general educational purposes only and does not constitute personalised financial advice. Everyone's situation is different — always speak to a qualified, independent advisor before making pension or investment decisions. Tax rules and pension regulations change; figures quoted are accurate at time of recording.