The new era of private markets
Capgemini ·
Once the domain of institutions, structural shifts are opening the door to individual investors, creating a major growth opportunity for banks and wealth managers. The post The new era of private markets appeared first on Capgemini .
For decades, private markets were reserved for large institutions and select ultra-high-net-worth individuals (Ultra-HNWIs), constrained by commitments of at least $1 million, complex partnership structures, and strict qualification requirements. 1
Today, technology, regulation, and market innovation are dismantling these barriers. Advances in fund administration, digital onboarding, distribution technology, evolving accreditation standards, retirement-plan access, and frameworks such as European Long-Term Investment Fund (ELTIF) 2.0 are expanding participation, while evergreen, semi-liquid, and feeder fund structures are bringing private markets closer to public markets.
As access expands, private markets are entering a period of accelerated growth. The evergreen, semi-liquid private market funds universe has expanded to nearly $450 billion and is projected to surpass $1 trillion within five years. 2 Individual investors already account for 20% of the $14 trillion private markets industry, with their share projected to reach 37% within five years 3 . With retail investors representing a largely untapped $60 trillion opportunity, 3 private markets are evolving from an exclusive niche into an increasingly accessible investment ecosystem powered by private wealth. This democratization is reshaping wealth management and unlocking new growth avenues for banks, wealth managers, and investors alike.
Private markets are progressively becoming core portfolio holdings as investors seek diversification, resilience, steady income, and potentially higher returns. Wealth advisors and individual investors recognize that traditional stock-and-bond portfolios exclude a growing investment opportunity set, with the universe of private companies 2.75 times larger than public markets 4 and a history of nearly 5% annualized outperformance versus the S&P 500 across 25 of 27 vintage years. 5
This growth spans a broad wealth spectrum. Ultra-HNWIs (typically over $30 million in assets), mid-tier millionaires, and the much larger “millionaires next door” and affluent segments each represent distinct opportunities, requiring differentiated value propositions, minimum tickets, and service models rather than a one-size-fits-all offering.
Private market strategies across private equity, private credit, real estate, venture capital, and infrastructure are increasingly being packaged into evergreen, semi-liquid, and Long-Term Asset Fund (LTAF) structures for individual investors, and are overcoming traditional barriers by offering the following.
Through new fund structures, advisor networks, custodial platforms, tokenization, fractionalization, and AI, private markets are becoming more accessible, scalable, and ETF-like. Leading banks and asset managers are already reshaping private market access, like JPMorgan’s Private Markets Fund and UBS’s Private Equity (Lux) Evergreen Secondary Fund. Morgan Stanley acquired EquityZen in January 2026, 7 expanding private-market access options.
Fintechs are pushing this frontier even further down-market. In July 2026, Revolut launched access to private market investments for eligible retail investors in Europe, partnering with Apollo, Ares, Hamilton Lane, and Partners Group, offering funds structured under the ELTIF 2.0 framework. 8 Investors can access these funds with a minimum investment of just €1. 9
As private wealth becomes a primary growth engine for private markets, banks must move beyond product distribution and build the capabilities to scale access. Whether through in-house development, WealthTechs partnerships, or targeted acquisitions, leading firms will balance cost, time-to-market, and control to strengthen their private markets offering.
At the same time, success will depend on building the digital infrastructure for onboarding, personalization, advisor enablement, servicing, liquidity management, and regulatory compliance, while integrating evergreen, semi-liquid, and multi-asset products into custodial platforms, model portfolios, and fund marketplaces. Crucially, banks must pair broader access with responsible stewardship by educating clients on periodic liquidity, gating mechanisms, and portfolio risks, supported by tools such as secondary-market access, nominee structures, and pre-drawdown solutions.
Banks that combine digital innovation, investor education, and robust risk management will be best positioned to capitalize on private market democratization and turn this structural shift into a lasting competitive advantage.
Technology, regulatory changes, and new fund structures. Digital onboarding, reduced minimum investments, and frameworks like ELTIF 2.0 are letting more investors access opportunities that were once limited to institutions and Ultra-HNWIs.
Investors are increasingly aiming to diversify beyond traditional stock-and-bond portfolios. Private markets can provide access to a broader range of companies and assets than through public markets alone.
They are generally less liquid than public securities. However, evergreen and semi-liquid funds may offer periodic redemption opportunities.
Evergreen funds continuously accept new investments and often provide periodic liquidity through redemption windows. They are a more flexible alternative to traditional closed-end private market funds.
Banks need the right infrastructure for onboarding, personalization, servicing, liquidity management, and compliance. They must also help clients understand liquidity terms, portfolio risks, and the liquidity solutions available.
1. Benchmarking the Evergreen Evolution Measuring semiliquid funds with the Morningstar PitchBook US Evergreen Fund Indexes, November 2025 2. The Evolution on of Evergreen Funds: Unlocking Private Markets for a New Generation of Investors, GTC Market Insights, June 2025 3. Braced for shifting weather McKinsey Global Private Markets Report 2025, May 2025 4. The Rise of Private Wealth in Private Markets, Adams Street, April 2025 5. Access the power of evergreen funds, Carlyle 6. Evergreen Funds: A Game-Changer for Private Equity, Private Capital Advisory Insights, August 2025 7. Morgan Stanley Closes Acquisition of EquityZen 8. Revolut empowers retail investors with institutional grade private markets access, Revolut, July 2026 9. Revolut to Offer Apollo and Ares Funds to Clients in Europe, Swissinfo.ch, July 2026
* Mandatory field
We are sorry, the form submission failed. Please try again.
* Mandatory field
We are sorry, the form submission failed. Please try again.
* Mandatory field
We are sorry, the form submission failed. Please try again.
Report World Wealth Report 2026 Explore our services Integrated Wealth Management Banking and Capital Markets Expert perspectives Business operations, Data and AI The rise of agentic AI in customer contact centers for wealth firms Gareth Wilson Jul 10, 2026 Customer experience, Data and AI Bringing banks and corporates together in the digital era Gareth Wilson Nov 6, 2025 Customer experience, Data and AI AI Strategies for Smarter Treasury Management in Banking Gareth Wilson Sep 3, 2025
The post The new era of private markets appeared first on Capgemini .