In January took place the much-anticipated 2025 edition of the IPEM Cannes, inaugurating a new format aimed at building closer ties between wealth advisers/managers, private market investors and fund managers.
Obviously, the move is quite timely, as we’ve seen some strong and structural trends shaping the industry over the past years, with fund managers looking at scaling their distribution and targeting the private wealth segment.
Of course, private markets are undergoing a transformation as they become more accessible to wealth clients. What was once a niche reserved for institutional investors is now moving toward a more inclusive model, driven by increasing awareness, technological advancements, changing investor preferences, and evolving operational structures. But this shift comes with complexities and challenges that market players must navigate thoughtfully.
One of the key developments from the discussions I heard is the rise of evergreen funds. These structures are easier for private clients to understand and market but they often involve compromises in terms of returns. Opening private markets to wealth clients also demands a radical rethinking of operations. Fund managers must overhaul IT systems, back-office operations, and client management to accommodate thousands of investors — a model completely different from dealing with a few institutional clients.
The democratisation dilemma
Much has been said about the "democratisation" of private equity, but the term is contentious. Private equity should be for the many but shouldn’t be for everyone — it should simply be more accessible to those with the right risk appetite and investment horizon. Achieving this balance requires scaling private markets through technological advancements and creating robust operational infrastructures. Only then can fund managers effectively cater to the growing interest from private wealth clients.
Adapting to a new reality
The industry is shifting its terminology, moving from "alternative investments" to the more mainstream "private markets." This linguistic shift reflects the journey from niche to mainstream. However, the critical question remains: how do investors access top-tier managers who truly deserve their capital? Scaling fundraising operations is equally essential. Managers must build the infrastructure to handle high volumes, ensuring compliance with regulatory frameworks and tailoring documentation to local markets. Digitalisation will play a pivotal role here, as will investor education initiatives to bridge knowledge gaps.
Investor perceptions and changing dynamics
Surprisingly, some resistance to private markets persists among both advisers and individual investors. Misconceptions abound, from hedge funds still being associated with private markets to unfounded concerns about liquidity. While high-net-worth individuals value liquidity, they don’t need access to all assets overnight. Another crucial question is whether a well-established brand is necessary to build trust in private markets. While brand recognition helps, scale and operational robustness often matter more in reassuring investors. Fund managers are also responding to growing demand for product variety, moving from limited options to a plethora of strategies that enable truly diversified portfolios.
Looking forward
Despite the opportunities, significant work remains. Many distributors still lack the infrastructure to seamlessly incorporate private market funds into discretionary mandates. To achieve the full potential of this wealth revolution, industry players must focus on education, technological innovation, and building scalable operations. Private markets are no longer just for institutions — they are becoming a viable and valuable option for wealth clients. But for this transition to be truly successful, the industry must embrace change, innovate, and educate!
Thibaut Charpentier,
Deputy Head of Marketing & Communications