When we think about the traditional investment playbook, it often centers on public stocks, bonds, and fixed deposits. But millennials are rewriting the rules. Armed with technology, a risk-taking mindset, and a hunger for diversification, this generation is increasingly gravitating toward alternative assets. And within this space, unlisted shares are emerging as a favorite.
A New Investment Mindset
Millennials, those born between 1981 and 1996, are approaching wealth-building differently. Unlike previous generations that leaned heavily on conventional investments, millennials are seeking exposure to private companies — long before they go public. They’re comfortable with volatility, understand the value of long-term growth, and are less inclined to follow herd behavior in traditional markets.
Why this shift? A mix of factors:
- Market fatigue from the ups and downs of public stocks
- Tech-savviness and access to investment platforms
- Desire for high-growth opportunities that traditional investments can’t offer
- A distrust of legacy financial systems that failed many during events like the 2008 crisis
Unlisted Shares: The New Frontier
Unlisted shares refer to equity in companies that are not publicly traded on stock exchanges. These companies can range from tech startups to pre-IPO giants. For millennials, this asset class holds strong appeal:
- Access to High-Growth Companies: Many of today’s unicorns spent years in the private space before hitting the public markets. Investing early allows millennials to participate in the value creation phase.
- Exclusivity and Community: There’s a certain pride in owning part of a promising private business that isn’t widely available. It’s not just an investment; it’s being part of an insider club.
- Diversification: Unlisted shares offer portfolio diversity away from the often over-analyzed, over-reacted public markets.
- Long-Term Play: Millennials are surprisingly patient investors when it comes to private equity. They know the payoff isn’t immediate, but the upside potential is significant.
Tech Platforms Are Bridging the Gap
This shift wouldn’t be possible without fintech. Platforms like InCred Money and others have made investing in unlisted shares more accessible. What used to require insider connections or high net worth is now within reach for mass affluent millennials thanks to:
– Lower ticket sizes
– Curated deal flow vetted by experts
– Real-time dashboards and reporting tools
– Educational content that simplifies complex financial products
What Millennials Want
Beyond just returns, millennials are looking for:
- Transparency: They want to know where their money is going and how it’s performing.
- Purpose-driven investing: Many prefer startups that align with their values — sustainability, innovation, or impact.
- Control: They want to make informed decisions, not just hand over money to fund managers.
Challenges Still Exist
While the unlisted space is booming, it’s not without hurdles:
– Liquidity is limited. Investors can’t sell shares as easily as public stocks.
– Information asymmetry is real. Due diligence takes effort.
– No standardized valuation models. Prices can vary across platforms.
Despite these, millennials remain undeterred. Their focus is long-term, and they’re willing to navigate uncertainty for the potential of higher returns.
Final Thoughts
Millennials are not just investing differently — they’re redefining the ecosystem. By embracing unlisted shares, they’re fueling the growth of private companies while also creating wealth in ways previous generations didn’t imagine. The trend is clear: the future of investing is private, digital, and millennial-driven.
Explore opportunities in unlisted shares today with InCred Money – where curated deals, insights, and tools meet a new generation of investors.
Source – Morgan Stanley
