Private Markets Surge as Asset Managers Chase Retail Investors, BCG Report Shows
- Editor
- May 1
- 2 min read
Updated: May 3
What's New:
Private market assets grew at an 11.1% compound annual growth rate from 2014 to 2024, far outpacing the broader asset management industry's 6.5% growth, according to BCG's Global Asset Management Report 2025. Semi-liquid funds have grown fivefold to over $300 billion since 2020, as asset managers race to package private investments for retail clients who control 48% of global assets.
Why It Matters:
The convergence of institutional-quality private market investments with retail demand represents a seismic shift in asset management. Success in democratizing private markets could unlock trillions in new AuM while reshaping industry economics through higher-margin products.
Big Picture Drivers:
Retail Appetite: Individual investors seek higher risk-adjusted returns traditionally reserved for institutions
Product Innovation: Technology-enabled feeder funds and evergreen structures overcome liquidity constraints
Partnership Evolution: Insurers provide stable capital base for private market expansion
Regulatory Adaptation: Managers navigate complex compliance requirements for retail distribution
By The Numbers:
11.1%: Annual growth rate for private market assets (2014-2024)
300 billion: Semi-liquid fund assets, up 5x since 2020
48%: Global assets controlled by retail investors
91%: Insurers planning to increase private asset investments (2025-2026)
Key Trends to Watch:
Asset managers experiment with placing private assets in active ETFs and model portfolios, requiring complex liquidity management and regulatory solutions.
Blockchain technology enables tokenization of private assets, reducing friction and enabling fractional ownership for smaller investors.
Insurance partnerships accelerate as firms leverage long-term capital to anchor private market products while accessing new distribution channels.
Evergreen semi-liquid funds gain traction by accepting continuous capital inflows and offering periodic redemptions while maintaining illiquid asset exposure.
The Wrap:
Private markets stand at an inflection point as asset managers race to bridge the gap between institutional-quality investments and retail demand. Winners will master the complex balance of liquidity management, regulatory compliance, and investor education.
Comments