Vanguard is to offer access to private equity in a move aimed at bringing meaningful competition on fees into the most profitable sector of the investment industry for the first time.
“Private equity will complement our leading index and actively-managed funds, as we seek to broaden access to this asset class and improve client outcomes,” said Tim Buckley, chief executive of Vanguard, the world’s second largest asset manager. “For individual investors in particular, this partnership will present an incredible opportunity — access and terms they could not get on their own,” he said.
The new private equity strategy will initially be provided by Vanguard Institutional Advisory Services to pensions, endowments and foundations as part of an ongoing effort to further expand the suite of products for these clients.