In a recent ION Influencers Fireside Chat, Kyle Lidbury, CIO at Perpetual Wealth Management, discussed the evolution of private assets in Australia. The conversation covered various aspects of alternative investments, regulatory challenges, and the future of private markets. Key Topics Discussed:

Background and Role: Kyle Lidbury introduced his role at Perpetual Wealth Management, highlighting the firm’s $200 billion in assets under management, with $20 billion in the wealth group and $1.5 billion in alternative assets.

Growth of Alternative Assets: Lidbury discussed the milestones in the growth of alternative assets in Australia over the past 15 years, emphasizing the role of superannuation funds and the increasing participation of institutions in alternative investments.

Client Interaction and Feedback: He explained how endowment funds and superannuation funds have shown growing interest in private markets, with institutions now allocating about 20% of their assets to alternative classes. Family offices also play a significant role through their personal networks.

Challenges in Alternative Investments: Lidbury highlighted several challenges, including regulatory scrutiny, valuation of assets, and the need for more client-friendly structures. He noted that ASIC is paying more attention to the sector, particularly in private credit.

Regulatory and Structural Issues: The discussion covered the importance of having policies and procedures for asset valuation and the need for independent oversight. Lidbury stressed the significance of good governance and the role of consultants in filling knowledge gaps.

Selection and Due Diligence: Lidbury emphasized the importance of thorough due diligence and meeting with decision-makers in alternative investment firms. He discussed the challenges of assessing smaller funds and the need for continuous monitoring of investment teams.

Market Dynamics and Trends: The conversation touched on the evolving dynamics of private credit and the impact of market changes on investment strategies. Lidbury noted the growth of secondary markets and the increasing consolidation among general partners (GPs).

Future Outlook: Lidbury expressed bullishness on Japanese private equity and predicted significant growth in secondary markets. He also discussed the potential for further consolidation among GPs and the challenges in other Asian markets.

Conclusion:The fireside chat provided valuable insights into the evolution of private assets in Australia, highlighting the opportunities and challenges in the alternative investment space. Kyle Lidbury’s expertise and experience offered a comprehensive overview of the current landscape and future trends.

Key timestamps:

00:07 Introduction to the Fireside Chat
01:28 Growth of Alternative Assets in Australia
03:05 Feedback from Institutional Investors
05:17 Challenges in the Alternative Asset Market
09:47 Regulatory Considerations for Alternative Assets
12:36 The Role of Consultants in Asset Management
14:36 Evolution of Selection Processes in Private Assets
17:11 Assessing Fund Performance and Management
19:11 Market Evolution and Liquidity Mechanisms
20:00 Understanding Market Dynamics
21:23 Final Insights on Asset Classes
22:27 Regional Investment Perspectives