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Insight & Opinion

A quarter of UK investors stuck with investments they cannot exit

Author: Gemma

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You may have noticed that at the start of July, Experience Invest launched a brand new research report. Based on an independent survey we commissioned among more than 800 UK-based investors, the study explores how the country’s investors are planning and executing their exit strategies.

The report contains many interesting and timely findings. In fact, you may have even spotted some of the insights from our latest research being featured in the national newspapers; over the past week, The Times, Daily Telegraph and Financial Times have all written about our survey, demonstrating the significance of the results.

You can download your own copy of the report by clicking here.

But while you’re here, let’s quickly recap on some of the standout findings contained within this paper:

• Four in five (80%) UK investors carefully consider the potential exit strategy before making any investment, while 72% target assets that provide an easy route to exit
• However, despite this careful approach, 25% of UK investors currently have investments they want to liquidate but can’t, and 32% have tried to exit an investment in the past five years but haven’t after learning they would incur unexpected fees for doing so
• Nearly two thirds (64%) believe investment providers need to provide more education around exit strategies

Naturally, our research goes into far greater depth as to the way investors go about creating an exit strategy, and the problems that can emerge as they look to liquidate their position in an asset.

Nevertheless, the above statistics alone make for very interesting reading. And there are some key lessons to be gleaned from them:

1. All investors should carefully prepare an exit strategy before making an investment – we found that 20% do not, and this approach can often lead to investors becoming stuck in financial positions they had not anticipated.

2. The asset class or classes an investor considers, as well as the exit strategies they attach to each investment, must be informed by their own unique situation. One must ask, what is the predicted lifecycle of the investment, are they likely to need to liquidate the investment to release capital, and what is their desired risk level across different investments?

3. Investment providers as a whole must take responsibility in educating clients about possible routes to exit, as well as the obstacles they may face, before a transaction is completed. Indeed, this is something we pride ourselves on at Experience Invest, and many of the investment opportunities we offer come with a pre-agreed exit plan. What’s more, soon we will launch our very own re-sales platform, which will enable our investors to sell their assets to another investor with greater flexibility.

A quarter of UK investors stuck with investments they cannot exit

To find out more about how investors are managing their exit strategies, be sure to download a copy of our new report – Exiting Investments: How are UK investors planning and executing exit strategies?

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