With private markets investments currently enjoying a surge in market interest, Lata Vyas sees major growth opportunities in the sector.

She points to BBH’s own inaugural private markets investor survey in which over 90% of respondents said they planned to increase investments in private markets over the next two years. This comes as no surprise to Vyas, who has closely watched the steady evolution of the private markets business over the last decade.

“Given how much the industry has changed I think it will continue to evolve at a rapid pace, with technology playing a big part in this,” she says.

Reflecting on her own career journey, Vyas sees both continuity and change. Her early work involved systems programming and technology, though she quickly realized her true passion was for financial services.

“While I did work very closely with technology initially, I soon switched to the financial services side, working in FX markets in Mumbai which I really enjoyed,” she says. Serendipity played a large part in Vyas’ entry into the private markets sector. After moving to London, she initially worked for a fund administrator before joining a private equity fund manager, where she focused on front- and back-office operational transformation projects.

“While I had no firm plans to work in the sector, an opportunity came my way in private markets which I seized upon,” she says.

Having joined BBH in 2012, Vyas is currently responsible for the product strategy and solutions for its private markets business, including real estate, private equity, private credit, infrastructure, and hedge funds.

She says her principal love is helping clients find solutions to knotty problems within private markets product design, technology strategy, and distribution.

“I talk regularly with clients to understand their pain points and how we as a firm can help them. I can draw on my knowledge of operating model design, private markets behavior and technology implementation to try and find solutions for the innovative product aspirations of our clients,” she adds.

Pioneering approach

Periodically, Vyas has found herself engaged in pioneering work which has helped reshape aspects of the industry. Five years ago, she says, her team helped launch a novel ‘evergreen’ fund product that ended up shaping their entire semi-liquid product offering.

In the current market, Vyas notes a broadening of private markets sector engagement.

Interest in private markets is extending from the traditional institutional side to wealth managers seeking a wide range of options, platforms, and a more flexible approach to asset allocation. BBH is adapting to meet these needs, she adds.

“In our view service providers able to support semi-liquid products that have a mix of public and private assets in their portfolios and automated connectivity with distribution platforms will really have a strong place in this changing landscape,” she says.

The private markets journey has not been without its pitfalls. Vyas believes scale and sufficient early seeding of funds are critical to success in Europe.

“Some managers familiar with existing distribution channels initially thought a ‘build and they will come’ approach to launching private market funds would work, only to find their products struggling through lack of scale. As a lawyer said to me recently, these products are sold, not bought,” she adds.

Liquidity is also a key concern for most investors, and getting the balance right between product design, returns, and lock-up periods is also critical.

New frontiers

Vyas sees that technology is playing a role in shaping this rapidly evolving market.

“As service providers we are starting to have more conversations about the tokenization of funds and digitized assets. While there are many aspects that need to be addressed, especially the risk framework for these products, over time we can expect more legislation and further regulation before these products become mainstream,” she adds.

Commenting on the scope for more retail engagement with the private markets sector, Vyas also remains cautiously optimistic.

“If private markets are to become more accessible to a direct retail investor, there are several challenges to overcome, the most significant being educating those investors on the illiquid nature and risks and the ability to provide clear, transparent reporting.

“Technology, data and digital tools will play a key part to improve investor experience and support the reporting requirements for both the end investor and regulators. Yet, with all this in mind, we believe exciting times lie ahead for the sector,” she concludes.