Private markets are becoming increasingly relevant to wealth managers aiming to deliver differentiated, long-term value to their clients. Once the exclusive domain of institutional capital, asset classes such as private equity, real estate, infrastructure, and private credit are now drawing strong interest from the retail segment.
According to our latest research report, 94% of asset managers expect to see growth in private market distribution into wealth management over the next five years. This momentum reflects a broader shift in investor behaviour, where diversification, stability, and return potential are central to portfolio strategies.
From niche to necessity
The appeal of private markets is well established. These assets offer enhanced return potential, lower sensitivity to daily market fluctuations, and access to innovative sectors and investment strategies. Hamilton Lane data shows that private equity buyouts have outperformed public equities by an average of 1,079 basis points across all vintage years. Private credit has similarly outpaced public leveraged loans by 625 basis points since 2000.
These returns are not going unnoticed. Wealth managers increasingly view alternative assets as essential portfolio components. In fact, 70% of those surveyed believe it is very important for wealth managers to offer private market products within the next five years, with a further 27% considering it moderately important.
Technology is central to expanding access
Blockchain and tokenisation are at the forefront of this transformation. These technologies allow private assets to be represented as fractional digital tokens, offering greater transparency, accessibility, cost efficiency, and more flexible liquidity options for a broader range of investors.
Our research shows that 58% of respondents view tokenisation as the most important technology for driving private market distribution into the wealth management space. By converting traditional fund units into digital tokens on a decentralised ledger, asset managers can create new opportunities for engagement and scale.
Supporting the shift through innovation and partnerships
We are actively enabling this shift. In February, we partnered with Sygnum Bank and Hamilton Lane to launch a DLT-registered share class, with the goal of expanding global private market access to a larger and more diverse group of qualified investors.
We also received regulatory approval in Luxembourg to manage onboarding, fund administration, transfer agency, and distribution activities for blockchain-registered alternative funds. These capabilities mean that managers can now offer tokenised exposure through secure, regulator-approved infrastructure.
As our global head of digital markets, Dan Archibald, explains: “From an efficiency perspective, the operational process and the technology are actually much more robust than existing models. The technology serves to reduce risk, rather than increase it.”
Solutions tailored to your needs
Through our global fund distribution network, ManCo services via FundRock, and integrated platforms, we provide a turnkey solution for wealth managers entering private markets. From structuring and onboarding to regulatory oversight and reporting, we deliver the tools managers need to grow with confidence.
Download our latest research report
Discover how wealth managers are incorporating private markets into their client strategies and the infrastructure enabling this transformation.
Our latest research, developed in partnership with Global Custodian, explores how retail investors are reshaping the private market landscape. We surveyed 117 senior executives, including C-suite leaders and portfolio directors, from firms managing between $1 billion and over $50 billion in assets, to offer a comprehensive view of where the industry is headed.
