The Rising Tide of Retail Investors in Private Assets

The shift towards private assets in personal portfolios is garnering increased attention from alternative asset managers, a trend that could prove beneficial for institutional investors such as pension funds and endowments. According to a report by Bain & Company, personal investments account for half of global wealth but only 16% of private asset investments. A significant number of high net worth individuals express interest in increasing their allocation of private alternative assets, which could result in a substantial influx of new money. However, the lack of scale in wealth management poses challenges in facilitating investments in private markets. To overcome this, asset managers are digitizing their platforms and creating feeder funds specifically for wealth managers. As the infrastructure of private markets improves, institutions are likely to reap the benefits.

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