Lloyds Corporate & Institutional head of asset & wealth management Tangwena Nelson on meeting professional investors’ increasingly sophisticated needs in private assets
Where – and why – are you anticipating demand or fund-flows from UK-based wealth managers and their clients over the next 12 months?
We are seeing demand gravitating towards private markets. UK wealth managers are increasing allocations to private credit, infrastructure and thematic private-market opportunities as they look for diversification and more resilient sources of return. The conversation has clearly shifted from ‘Should private markets be part of the portfolio?’ to ‘How do we access them more efficiently and more directly?’
Family offices, in particular, are moving decisively in this direction. They are becoming increasingly institutional in the way they deploy capital, looking for direct access to high-quality opportunities rather than only allocating through funds.
There is also a growing appetite for opportunities that offer both financial returns and a sense of contributing to the UK’s long-term economic priorities – sustainable infrastructure, regional regeneration and the transition to a low-carbon economy. This combination of yield, diversification and purpose is shaping asset-allocation discussions across the UK wealth landscape.
How are you planning to address and serve that interest?
A significant part of our role is the origination of private-market opportunities. As we operate as both a lender and a supporter of private-market sponsors, we see opportunities at source and understand the underlying dynamics well before they reach the wider market. That visibility allows us to curate high-quality opportunities that align with the increasingly sophisticated needs of wealth managers and family offices.
Our aim is not just to offer access, but to provide access earlier and with greater transparency. Family offices, in particular, value origination-led exposure: opportunities that have been structured with institutional discipline but are still accessible to long-term private capital.
We also have the ability – working alongside LDC, the leading private equity investor that is part of Lloyds Banking Group – to look across both debt and equity in private markets. Being able to think across the capital structure is an important strategic advantage for clients seeking more tailored ways of deploying private capital.
Ultimately, our focus is on long-term partnerships. We want to work with clients who value clarity around risk, alignment of interest and thoughtful access to private markets rather than simply chasing flows.
Are you seeing a divergence in the demands of UK wealth managers versus, for example, their peers in Europe or on the institutional side in the UK?
The core motivations around private markets – yield and diversification – are broadly consistent across both markets. The differences are more about intentionality: UK wealth managers, especially family offices, are moving quickly up the sophistication curve and increasingly resemble smaller institutional investors. They want clarity, efficiency and increasingly more direct access.
Where UK clients differ is a deeper understanding of domestic opportunities, such as infrastructure and regional regeneration. They see private markets not just as portfolio diversifiers, but as vehicles for contributing to national economic priorities and, as such, want bespoke access and better alignment – not off-the-shelf private-markets exposure.
As a business, how do you define ‘private assets’ and to what extent should wealth managers be looking to service investor demand here?
We view ‘private assets’ as investments in non-publicly traded markets – private equity, private credit, infrastructure, real estate and, increasingly, direct lending opportunities. And the debate is not whether asset managers should service this demand – the market has already decided. Private markets are becoming a core part of portfolios.
The key question, then, is how asset managers serve this demand. There is a clear role for multi-product platforms that can offer diversified exposure in a scalable way. At the same time, there is a role for specialists with deep domain expertise who can provide direct access.
What drives your approach to client communication?
And is there a case for focusing on attracting the ‘right’ type of client? Transparency and alignment are at the heart of our client communications. We aim for clear, consistent dialogue around capabilities, risk and expected outcomes – and we are honest about where we can add value. We focus on working with clients who value our origination-led approach and long-term thinking.
This selectivity allows us to build deeper, more strategic relationships. It ensures we are deploying resources where we can make the most difference and add value. And it creates alignment – we succeed when our clients succeed because we are focused on outcomes rather than just flows.
May we have two book recommendations, please – ideally, one with an investment connection?
Two come to mind here. Monkey Business by Peter Troob is a sharp, entertaining look at life inside an investment bank – not just the deals, but the culture, pace and pressures that shaped the industry at the time. The second is Why Should White Guys Have All the Fun? by Reginald Lewis. It is an extraordinary story of someone who rose from poverty, went to Harvard and built a multibillion-dollar business.
Gazing into your crystal ball, what does the asset management sector look like 10 years from now?
The sector will likely be split between large platforms offering comprehensive, technology-enabled solutions at scale, and specialist managers with deep expertise in specific strategies.
“The conversation has clearly shifted from ‘Should private markets be part of the portfolio?’ to ‘How do we access them more efficiently and more directly?’
