Private Markets Reshape Financial Data Infrastructure Plans, McKinsey Analysis
- Editor
- Feb 4
- 1 min read
What's New: According to McKinsey's latest industry analysis, private markets have grown at 14% CAGR over the past decade, forcing financial data and infrastructure providers to radically rethink their service offerings for this expanding sector.
Why It Matters: As private markets become increasingly complex and institutionalized, general partners are actively seeking scalable infrastructure solutions to manage expanding operations, creating a significant opportunity for financial data providers.
Big Picture Drivers:
Growth: Rising retail investor participation across all private market asset classes
Complexity: New fund structures and multi-asset platforms requiring sophisticated operational support
Scale: Largest managers facing diseconomies of scale as support functions expand
Outsourcing: GPs actively exploring fintech providers for middle and back-office functions
By The Numbers:
AUM Range: $8-10 billion optimal range for insourcing middle/back office functions
Growth Rate: 14% CAGR in global private markets AUM over past decade
Deal Activity: Targeted acquisitions focusing on niche private market capabilities
Economics: Support functions becoming larger share of operations costs
Key Trends to Watch:
Infrastructure providers are building off public market capabilities to support private market investment lifecycles
Retail Access platforms are emerging to connect high-net-worth investors with alternative investments
Portfolio Companies receiving increased attention as holding periods lengthen
Technology Integration focusing on workflow automation, data management, and LP reporting
The Wrap: Financial infrastructure providers must develop comprehensive private markets strategies to capture this growing segment, with particular focus on scalable middle and back-office solutions that can support both institutional and retail participation.
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