The Australian Securities and Investments Commission’s (ASIC’s) concerns about private markets appear to be justified with new research revealing 56% do not have a clear idea of how private assets work.

The research, undertaken by CoreData on behalf of Natixis Investment Managers, confirmed a significant level of interest in private asset investment opportunities but also revealed a worrying knowledge gap.

The commentary attaching to the research said that despite Australian investors wanting to capitalise on the opportunity in private markets, many don’t understand how private assets work as more than half (56%) think private assets, like listed assets are priced daily.

It said this is as 58% of investors claim to understand the difference between public and private markets, compared to 65% globally.

The findings are derived from a survey of over 7,000 individual investors globally with more than $100,000 in investible assets outside of superannuation and their homes.

It found that, currently, three in ten (31%) of Aussie respondents invest in private assets, while 54% are interested in investing in private assets but are worried about liquidity.