Private markets are undergoing a major shift. Once the preserve of institutional investors, private equity, private credit, and real assets are now attracting increasing interest from the retail segment.
At a recent leadership conference, Georges Archibald, Chief Commercial Officer, and Elaine Chim, Global Head of Fund Services, shared their perspectives on how the market is changing and unpacked key findings from our latest research report on the future of private markets in a retail-driven landscape.
Appetite and accessibility
Investor demand for private funds has risen sharply. As Georges noted, this surge is not limited to retail clients, as pensions and high-net-worth individuals are also seeking more direct exposure, often preferring targeted alternatives over bundled products.
He pointed to technology as a key enabler. Platforms now offer better transparency and simpler onboarding, helping a broader investor base engage with private assets.
Elaine highlighted a shift in expectations. “Retail investors want more than just access; they expect strategies that offer customisation, tax efficiency, and ESG integration. That puts pressure on fund managers to rethink how they structure products and operations.”
Managing regulatory friction
Despite rising demand, significant barriers remain. Both agreed that regulation, liquidity, and minimum thresholds continue to pose challenges, particularly in aligning long-term fund structures with the shorter-term liquidity preferences of retail investors. Elaine noted regulators are understandably cautious, but new structures are emerging to ease the path. ELTIF 2.0 and LTAFs, for example, aim to reduce entry barriers and offer more flexible liquidity options.
Still, Georges emphasised that success depends on strong execution:
“We have a lot of experience with ELTIFs, LTAFs, interval funds in the US, private market BDCs - all of which require operational infrastructure to effectuate a compliant strategy.” – Georges Archibald
These vehicles may open the door, but they are far from plug-and-play. They demand robust systems, regulatory understanding, and the ability to scale with confidence.
Misconceptions around data security
One of the more surprising insights from the research was the perception among some survey respondents that outsourcing to administrators could increase data security risk. Georges found this counterintuitive. He explained that they invest heavily in data protection and are subject to stringent regulatory oversight. Safeguarding client data is their core business, so the perception that data may be less secure with them is not supported by reality.
Elaine agreed, noting that concerns often stem from a perceived loss of control. “But if we had any concerns about our data environment, we would not have a business,” she added. “Security is at the heart of what we do.”
Lift-outs and the outsourcing opportunity
The conversation also turned to lift-outs and the increasing adoption of outsourcing strategies. According to the report, 65% of firms have executed a lift-out in the last three years. These arrangements allow fund managers to transfer in-house teams and operations to a service provider, preserving institutional knowledge while reducing costs.
Elaine explained the rationale: “It’s about continuity. The team remains focused on the same tasks, just within a different structure - one designed to deliver the same outcomes more efficiently.”
This flexibility matters most during fundraising transitions. “When you’re a manager and you carry fixed FTE costs, outsourcing gives you room to scale up or down depending on where you are in the cycle,” Georges added.
Elaine also stressed the importance of access to tools: “Many managers can’t get the internal budget for system upgrades, vendor oversight, or training. Outsourcing to a provider whose job is to stay current is often the practical choice.”
A call to action for the industry
The report and conversation point to a clear conclusion: the retailisation of private markets is not a passing trend. It reflects a deeper shift in how investment strategies are built, delivered, and regulated. Managers who can adapt their structures, strengthen their operational resilience, and partner with experienced service providers will be best positioned to benefit from this shift.
“We’re well positioned to tap into this market. We’re in the business of generating, holding, and delivering data back to clients, and if we had any concerns about our data environment, we wouldn’t have a business.” - Elaine Chim
Download the full report
Download the research report to gain a deeper understanding of the trends, challenges, and opportunities shaping the future of retail-driven investment strategies.
