SIPPs to welcome PE

SIPPs, the UK Self Invested Personal Pensions, will be allowed to include direct private equity investment in unquoted companies from April 6 when the government relaxes restrictions on the types of assets investors can hold in these vehicles. According to research conducted by Hotbed, the supplier of alternative asset investments, existing SIPPs users are keen on using the change in regulation to invest in private equity. The research found the following interest among SIPPs users;

– 67% private equity

– 60% residential property

– 40% hedge funds

– 13% fine wine

– 13% art

– 7% classic cars

Gary Robins, chief executive of Hotbed, said: “The type of high net worth individuals who have SIPPs are often attracted to the asset class as they understand the risks and rewards involved. They also tend to be investors who wish to take a more pro-active approach to the management of their SIPP investment portfolio.”