Posted inAlternatives

Bite unveils private markets portfolio

Bite Investments launched its first commingled private markets product this week, targeted at wealthy investors.

Rich individuals will be able to get diversified exposure across investments strategies, geographies, and fund managers by investing in the Bite Private Markets Portfolio, the company said in a statement.

Bite Investments is a London- based fintech company with an alternative investment platform, which closed its pre-series A+ funding last April.

The portfolio will allocate capital into eight to 10 underlying funds, assessed and selected by Bite Investments’ investment team.

The minimum investment size is $100,000 and the core sectors are: healthcare, information technology, software, business services, financial services, consumer, and industrials.

“The promise of alternatives is excess of returns in comparison to risk. For far too long, individual investors have not been able to capitalise on this,” Henry Talbot-Ponsonby, co-founder and president of Bite Investments said.

“By making alternatives more accessible to our clients, we are helping them diversify instantly. Using technology, we enable individual investors to access, unlock and invest bite-sized amounts into some of the most exciting private markets strategies out there”, Talbot-Ponsonby added.

Private market

There has been a profound change in the way companies grow and raise money, by staying private. Their eventual success may never actually be accessible via public markets. This means investors who ignore private markets now, may be limiting their potential for the future, Bite argued.

“Historically, individual investors have neither had access to top fund managers, nor have they been able to reap the benefits and value created as companies stay private for longer. Tomorrow’s unicorns may never even go public”, Anna Barath, investment director at Bite Investments, said.

With the public markets not generating alpha to satisfying levels and in the current low-interest rate environment, investors are turning to the private markets, she added.

Private equity has been one of the best performing asset classes globally over the last three decades, according to McKinsey’s Global Private Markets Review 2020. However, due to a combination of high fees, high minimum investment amounts, and lack of access to top funds, wealth managers and financial advisers have not been able to access this investment strategy.

Private investment markets are expected to grow. A Deloitte Insights article forecasts global private equity assets under management to reach almost $6tn in the next four years and it has shown resilience to recent downturns, including the global financial crisis of 2007-09 and the Covid-19 pandemic of 2020-21, according to McKinsey.

Bite Investments’ investment team has advised on around $13bn of capital raising. Its fund and direct commitments made across private equity, private credit, and real assets are about $4.2bn.

Part of the Mark Allen Group.