From Morningstar: 2025-03-27 05:46:00

Long-term asset funds (LTAFs) offer access to illiquid private assets, authorized by the FCA and available to a wider investor base than traditional private market investments. Diversification benefits are key, with potential high returns from private equity, debt, infrastructure, and more. Retail investors can now access LTAFs, but due diligence is crucial.

Investors in LTAFs must understand the fund’s terms and liquidity, ensuring a balance between liquid and illiquid assets to meet redemption demands. Realistic return expectations are important, as returns may be diluted by holding liquid assets. Investors should also assess total fees, valuations, transparency, and fund manager skill when considering LTAF investments.

LTAFs, complex funds investing in illiquid assets, require experienced asset managers with significant resources. A large investment team with expertise in private assets, fund-of-funds allocation, risk management, and valuation is crucial for success. Retail investors and wealth clients can benefit from LTAFs’ diversification and return potential, but careful due diligence is essential.



Read more at Morningstar: Private Market Investing: How to Evaluate Long-Term…