According to a recent academic study by Ludovic Phalippou, Professor of Financial Economics at Oxford University's Saïd Business School, private capital fund managers have accumulated more than $1 trillion in carried interest—the performance-based compensation known as "carry"—from funds raised between 2000 and 2019.

The convergence of public and private markets is accelerating, but fees in semi-liquid private market vehicles are currently three times higher than typical mutual funds—creating a steep hurdle that threatens widespread adoption. Kunal Kapoor, CEO of Morningstar, warns that without dramatic fee compression, the industry's mainstream ambitions will stall despite growing investor interest.