<p>UBS is entering into a tie-up with Switzerland's Partners Group, the bank said on Friday, in a move to give its clients access to lucrative private markets normally accessible by only the wealthiest investors.</p>.<p>The partnership will broaden access to the fast-growing investment niche, allowing UBS clients with more than 20,000 euros ($23,650) to invest as they seek yield in a volatile, low-interest rate environment.</p>.<p>Private markets - or investments into companies not traded publicly on stock exchanges - have been one of the highest-returning asset classes in recent years.</p>.<p>But the illiquid market, where it can be difficult to quickly pull out cash or assess valuations, is generally seen as most suitable to long-term investments by institutional investors like pension funds or the very richest families.</p>.<p>"This is about extending the drive for UBS to make more private markets products available to its clients. It has been a big growth area for UBS for the last three years and it remains very important," Jake Elmhirst, UBS's head of private markets content in its wealth management division, told Reuters.</p>.<p>"When you are in a negative interest rate environment clients need to find ways to generate returns and to diversify their portfolios."</p>.<p>UBS aimed to attract $1 billion-$3 billion in new annual private market investments through the partnership, he said.</p>.<p>Under the arrangement, Partners Group, which manages just under $100 billion in global private markets investments, will carve out a portion of its private equity deal flow specifically for UBS clients.</p>.<p>UBS clients across Europe and Asia will then have access to private equity buyouts and other co-investments through an aggregating vehicle, to be launched in the first half of 2021.</p>.<p>"For a typical buyout fund you would need to be investing north of $100 million to be considered as a credible co-investor," Elmhirst said.</p>.<p>The minimum investment for UBS clients in such vehicles would likely be around 100,000 euros.</p>.<p>UBS retail clients across Europe will also have access to a broader long-term investment fund run by Partners Group, which provides exposure to 30-60 private investments, Partners Group co-founder Urs Wietlisbach said.</p>.<p>The minimum investment for this fund would be about 20,000 euros. Investments were likely to generate low-double-digit net annual returns.</p>.<p>"We believe that investing in private markets is a megatrend that is likely to continue, and Partners Group is one of the leading companies in this area," Vontobel analyst Andreas Venditti said in a note, adding that the deal solidified Vontobel's "buy" rating on UBS and 1,020 franc target price for Partners Group shares.</p>
<p>UBS is entering into a tie-up with Switzerland's Partners Group, the bank said on Friday, in a move to give its clients access to lucrative private markets normally accessible by only the wealthiest investors.</p>.<p>The partnership will broaden access to the fast-growing investment niche, allowing UBS clients with more than 20,000 euros ($23,650) to invest as they seek yield in a volatile, low-interest rate environment.</p>.<p>Private markets - or investments into companies not traded publicly on stock exchanges - have been one of the highest-returning asset classes in recent years.</p>.<p>But the illiquid market, where it can be difficult to quickly pull out cash or assess valuations, is generally seen as most suitable to long-term investments by institutional investors like pension funds or the very richest families.</p>.<p>"This is about extending the drive for UBS to make more private markets products available to its clients. It has been a big growth area for UBS for the last three years and it remains very important," Jake Elmhirst, UBS's head of private markets content in its wealth management division, told Reuters.</p>.<p>"When you are in a negative interest rate environment clients need to find ways to generate returns and to diversify their portfolios."</p>.<p>UBS aimed to attract $1 billion-$3 billion in new annual private market investments through the partnership, he said.</p>.<p>Under the arrangement, Partners Group, which manages just under $100 billion in global private markets investments, will carve out a portion of its private equity deal flow specifically for UBS clients.</p>.<p>UBS clients across Europe and Asia will then have access to private equity buyouts and other co-investments through an aggregating vehicle, to be launched in the first half of 2021.</p>.<p>"For a typical buyout fund you would need to be investing north of $100 million to be considered as a credible co-investor," Elmhirst said.</p>.<p>The minimum investment for UBS clients in such vehicles would likely be around 100,000 euros.</p>.<p>UBS retail clients across Europe will also have access to a broader long-term investment fund run by Partners Group, which provides exposure to 30-60 private investments, Partners Group co-founder Urs Wietlisbach said.</p>.<p>The minimum investment for this fund would be about 20,000 euros. Investments were likely to generate low-double-digit net annual returns.</p>.<p>"We believe that investing in private markets is a megatrend that is likely to continue, and Partners Group is one of the leading companies in this area," Vontobel analyst Andreas Venditti said in a note, adding that the deal solidified Vontobel's "buy" rating on UBS and 1,020 franc target price for Partners Group shares.</p>