Private markets are no longer a niche corner of the investment landscape – they’ve become a central source of growth and innovation. As investors seek new sources of alpha and diversification, the flow of capital into alternatives continues to accelerate. Global alternatives AUM could exceed $30 trillion by 2030, with private market assets alone projected to grow more than 130% by 2032.
This surge offers unprecedented opportunity – and brings equally unprecedented operational pressure. Many firms in the wealth management chain are still relying on processes designed for another era: manual data entry, PDFs, static portals and point-to-point connections that can’t scale to meet the new volume or complexity of today’s market.
To help shed more light on this evolution, we’ve assembled a straightforward Q&A exploring the
current foundations of private market infrastructure, the disruption they are facing and the
technologies reshaping how firms operate and grow.
Why are private markets becoming a strategic focus for wealth managers and institutional investors alike?
Private markets have long been an important engine of capital formation, offering exposure to assets and opportunities not available in the public sphere. As competition intensifies and yield in traditional markets compresses, firms view private investments as a critical differentiator – a way to deliver diversification, performance and exclusivity to their clients. In addition, as high-net-worth and retail investors grow ever more sophisticated, these individuals are now demanding greater access to the private markets.
What’s driving the rapid growth of private markets?
Institutional proof points, demographic shifts and structural innovation are converging. Large allocators have validated private markets’ ability to deliver long-term returns, while younger investors are showing a particularly strong appetite for alternatives. Meanwhile, regulatory and product innovations are lowering barriers to entry, fueling rapid adoption across the wealth management channel.
What barriers have historically limited broader participation in private markets, and how are they being addressed today?
Historically, broader participation in private markets was limited less by logistics alone and more by structural gatekeeping. Regulatory requirements restricted offerings to accredited or qualified investors, deal flow circulated through tight relationship networks and opaque information made diligence impractical for newcomers. High investment minimums reinforced that exclusivity, but they were a symptom of a market built for institutions. Today, access is widening through regulatory shifts like Reg A+ and Reg CF, as well as the gradual inclusion of private strategies in retirement plans. At the same time, digital platforms are lowering operational hurdles – standardizing onboarding, documentation and reporting – so participation can expand responsibly.
How have investor expectations evolved in recent years? How do private markets need to evolve to meet those expectations?
Investors increasingly expect private market experiences to match the speed, transparency and convenience of public markets. They want efficient onboarding, real-time updates and regular reporting. To meet those expectations, firms need infrastructure that connects all parties via consistent processes and a unified fabric – ensuring data flows instantly and accurately across the investment lifecycle.
How can technology help firms scale their participation in private markets
more efficiently?
Through modern software, firms can replace repetitive, manual steps with digital workflows capable of handling higher volumes without added cost or headcount. Automating processes such as subscriptions, capital calls and redemptions reduces errors, accelerates transactions and frees up teams to focus on client relationships rather than administrative tasks.
What does “infrastructure” mean in the context of private market investing?
Infrastructure refers to the underlying systems, standards and connections that enable data, transactions and communications to move among GPs, wealth managers, fund administrators, custodians and other private market stakeholders. It’s the digital backbone that makes private market investing operationally possible at scale.
What role does private market infrastructure play in supporting growth, efficiency and investor access?
Strong infrastructure provides consistency and control. With a foundation of shared data and standardized processes, firms can confidently manage more volume, engage more counterparties and support more complex products while maintaining accuracy and compliance. The right approach to private market infrastructure transforms operational drag into operational leverage.
What are the biggest shortcomings of today’s private market infrastructure?
Many operational processes in the private markets still rely on PDFs, emails and manual reconciliations. Each counterparty often maintains its own records, creating data fragmentation and delays. These inefficiencies act as a hidden tax on growth – increasing costs, slowing transactions and limiting firms’ ability to expand their investor base.
What does modern, scalable private market infrastructure look like in practice?
Modern infrastructure moves private markets from fragmented, point-to-point processes to a coordinated system built on common frameworks. Scalable systems connect every participant through a single integration. Shared data ensures all parties see the same information at the same time, while standardized workflows enforce accuracy and auditability. Real-time visibility gives firms control over transactions from initiation to settlement, turning once-opaque operations into transparent, repeatable processes.
How do shared data and straight-through processing transform private market operations?
Straight-through processing means transactions flow electronically from initiation to completion without manual re-entry or intervention. When combined with shared data, it creates a single source of truth across the ecosystem. This combination reduces errors and shortens processing times from weeks to hours, enabling true scalability at a time of unprecedented demand.
How can permissioned blockchain and modular system design create future-proof systems for private market investing?
Permissioned blockchain provides a secure, distributed foundation where each party maintains its own records while syncing with a shared ledger. Meanwhile, modular architecture enables new capabilities – from digital fund structures to enhanced reporting – to be added without rebuilding core systems. Together, they enable innovation at the pace of market change.
Why will infrastructure itself become a competitive advantage in the next
era of private markets?
Efficiency scales. Firms that can onboard partners quickly, execute transactions digitally and maintain real-time transparency will capture more assets and deliver a better client experience. In a market defined by speed and scale, infrastructure is no longer a back-office consideration – it’s the foundation of growth.
As private markets evolve from closed networks to connected ecosystems, firms that treat infrastructure as strategy – not mere plumbing – will define the next era of growth and access. If you’d like to discuss any of the concepts in this piece in more detail, get in touch with us.