Private Equity: Banks 'returning to private equity'

Private Equity: Banks 'returning to private equity'

Private Equity: UK banks are showing an increasing interest in alternative assets including private equity, according to new data.

A new study has suggested Britain's banks are showing an increasing interest in risky assets such as private equity and hedge funds, with confidence returning to the sector after the uncertainty which followed the financial crisis.

The Financial Times reports that data compiled by wealth management consultant Scorpio Partnership found that an average of 17 per cent of wealth management firms' portfolios was concentrated in alternative assets.

"Private banks are by nature cautious with their clients' money," said Scorpio managing partner Catherine Tillotson. "The whole alternative industry has looked to get its house in order."

Barclays Wealth, which had no exposure to equity investment at all until last year, now has 16 per cent in alternatives. However, wider holdings remain some way below the peak reached during the first quarter of 2009, when they stood at 24 per cent.

Last week, the newspaper revealed a Mergermarket study indicated a resurgence in the global private equity industry, with first-half deals worth more than £80 billion taking place. Read More