With a new segment on its digital investment platform, Scalable Capital is setting new standards for investors: Soon, suitable investors in Germany will get access to alternative investments such as private equity. Through the Scalable Broker, they will be able to invest in companies that are not listed on stock exchanges for the first time. Until now, benefiting from this additional return and diversification potential has been primarily reserved for professional investors. At the start of the new offer, Scalable Capital is the first digital investment platform to offer access to the BlackRock Private Equity Fund. The fund is managed by BlackRock, one of the world's leading private markets investors trusted to manage 450 billion US dollars in alternative assets. After a minimum one-off investment from 10,000 euros, the fund is also available in a savings plan. There are no front-end loads for the fund. This is a further step in the endeavour to open up the entire investment spectrum to long-term oriented investors for their financial future.

“As alternative investments such as private equity are becoming increasingly relevant for participation in economic growth, we now make them accessible to investors,” says Julius Weller, Vice President Broker at Scalable Capital. “With the expansion of our investment platform to include this segment, clients gain access to the high return potential of private companies. We also achieve the favourable terms and simple handling for private equity that Scalable Capital is known for.”

An attractive, strongly growing investment market outside of the stock exchanges

Globally, the vast majority (88%) of companies with more than 100 million euro turnover are privately owned - hence not listed. Making these companies investable creates a huge new investment universe that could continue to grow in the coming years, as the share of listed companies has been continuously declining for two decades. In Europe, the number of listed companies has fallen by almost 23% since 2009, while the number of private companies has risen by over 17%. Germany showcases a distinct extreme in relation to this development. Here, over 98% of companies with more than 100 million euro turnover are privately owned.

These include numerous ‘hidden champions’ that are global market leaders in their field and represent the strength and innovative power of mid-market enterprises. Companies worldwide instead of going public prefer to remain private completely or significantly longer than before and are increasingly financing themselves via private equity. One reason for this shift is the growing need for long-term financing that private equity can offer, to adapt to advancements like artificial intelligence; additionally, accessing this capital has become more attainable. Private equity also offers more flexibility in the development of business models and strategies, contrary to what was often assumed in the past. As a result, a large part of economic value creation is shifting to the private markets. Their invested volume almost quadrupled globally between 2013 and 2023 to USD 15 trillion and is expected to rise further to USD 29 trillion by 2030.