Private Markets Expand to Retail Investors, but Scale Challenges Emerge
Event summary
- 84% of asset and wealth managers now offer or plan to offer private markets strategies for individual investors.
- Only 7% of firms expect to reduce allocations to private markets, while half plan to increase exposure.
- Artificial intelligence and AI infrastructure rank as the top investment theme globally in private markets.
- Nearly 80% of respondents cite liquidity management as a key challenge in scaling private markets strategies.
The big picture
Private markets are undergoing a structural shift toward individual investor participation, driven by strong demand and broader access. This expansion is reshaping industry operations, with success depending on firms' ability to manage complexity and deliver consistent outcomes across diverse client bases. The asset class's role as a core portfolio allocation is being reinforced by its resilience amid geopolitical uncertainty and market volatility.
What we're watching
- Operational Scaling
- How firms will manage liquidity and compliance challenges as they expand private markets access to individual investors.
- Investment Themes
- Whether AI and infrastructure will maintain their dominance as top investment themes in private markets.
- Distribution Channels
- The pace at which wealth management platforms will become the primary channel for private markets access.