Hargreaves Lansdown set to allow private market bets
Hargreaves Lansdown is pressing ahead with controversial plans to offer some of its two million customers exposure to risky private market investments through Individual Savings Accounts (ISAs) this month.The move by Britain's biggest investment platform comes as fears about unregulated 'shadow banks' grow after a spate of corporate collapses blamed on lax lending.The blow-ups prompted some private credit investors to head for exits, only to find their way blocked by players such as BlackRock, Blackstone and Blue Owl, who capped how much could be withdrawn to prevent a mass outflow.Private market funds offer the potential for big profits by investing in companies that are not listed on stock markets. But the prospect of better returns comes with greater risk – as the underlying assets, such as property or infrastructure, are harder to price and sell than shares and bonds traded daily. In focus: Hargreaves Lansdown is pressing on with controversial plans to offer some of its two million customers exposure to risky private credit investmentsThis lack of liquidity is a reason why investing platforms such as AJ Bell have shunned Long-Term Asset Funds (LTAFs). Lack of demand is another.'Customers already have access to a wide range of funds and trusts offering exposure to infrastructure, property and private equity assets,' said AJ Bell's Charlie Musson. 'We continue to monitor the development of LTAFs but have no plans to offer them.'But Hargreaves Lansdown, recently taken into private ownership, is launching LTAFs in tax-free Isa wrappers, to be offered to 'experienced' or 'high net worth' clients only for a minimum investment of £10,000.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Hargreaves Lansdown set to allow private market bets
