Private markets are undergoing a significant transformation as asset and wealth managers increasingly target retail investors, according to State Street’s latest Global Private Markets Survey Report. The study, which surveyed 480 senior executives globally, highlights that 84% of managers are either offering or planning to offer private market solutions tailored to individual investors. In the Asia Pacific region, this figure rises to 85%.
The report, titled “Resilience Meets Opportunity,” reveals that nearly six in ten institutions in Asia Pacific anticipate that at least half of their fundraising will come from retail-focused strategies within three years. Eric Chng, Senior Managing Director for Global Alternatives at State Street, noted, “It is a clear signal that the private markets industry is undergoing a structural shift, and retail will become a core component of industry growth.”
Despite a 47% decline in fundraising over the past year, the survey indicates that institutional investors remain committed to private markets. Globally, only 7% of respondents plan to reduce their exposure, whilst 50% intend to increase allocations. In Asia Pacific, 52% of investors are more likely to increase their private market allocations, with a notable interest in private credit strategies.
However, the expansion into retail markets brings challenges. Nearly 80% of respondents identified liquidity management as a key issue, alongside rising demands in compliance and reporting. Chng emphasised the need for improved cash flow forecasting and liquidity management, stating, “Investors are seeking deeper look-through, clearer fee and expense visibility, and stronger valuation governance.”
As private markets continue to evolve, the focus on operational maturity and scale is expected to be crucial in capturing a growing share of capital.
