Shifting trends in Gen Z investing and Czech private equity access

Generational and regulatory shifts are altering the investment landscape. According to a World Economic Forum report, Gen Z is entering the market much earlier than previous generations, with approximately one-third starting to invest during university or early adulthood. Driven by high living costs and economic uncertainty, this demographic shows a significant preference for digital platforms, social media, and artificial intelligence, with over 40 percent willing to entrust investment management to AI.

Furthermore, Gen Z exhibits a higher appetite for risk, with 71 percent holding cryptocurrencies as more than a third of their investment volume.

In the Czech Republic, the investment market is also seeing changes through new legislative frameworks. While Western markets often utilize pension funds for private equity, Czech pension funds have traditionally focused on low-yield bonds. However, starting in 2024, new regulations are opening channels for retail investors to access private equity directly through qualified investor funds and European ELTIF 2.0 regulations.