How Retailization Is Reshaping Private Markets
A major shift is redefining investor bases and operating models — and GPs who adapt early will lead.
For years, retail participation in alternatives was constrained by regulation, access barriers and concerns around disclosures and liquidity. But the landscape is shifting quickly. Regulators in select regions have already opened pathways for non-accredited investors to participate in private markets, and more jurisdictions are beginning to explore similar moves.
At the same time, private markets themselves are realigning. Fundraising pressures, tighter liquidity and new product innovation are accelerating the entrance of retail and wealth investors — a development that is redefining who can access private opportunities and how managers must operate to support this expanding investor base.
The Retailization of Alternative Investments, our new report featuring exclusive PitchBook data, unpacks these changes, offering a forward-looking view of the forces reshaping global capital flows. Below is a preview of what’s inside — and why managers, allocators and industry leaders should be paying close attention.
One capital base is under pressure as another emerges
Fundraising challenges, slower exits and liquidity constraints are contributing to one of the most challenging environments general partners (GPs) have seen this decade. Global private equity (PE) fundraising volumes have declined for three consecutive years, and dry powder has dipped for the first time since the pandemic. At the same time, mega-cap public equities — particularly the Magnificent 7 — continue to deliver strong returns, diverting institutional allocations away from alternatives.
These pressures are driving managers to rethink their capital strategies as they look to an investor base historically excluded from private markets: retail and wealth investors. With retail emerging as institutional investors pull back, fund managers willing to innovate have a rare opening to win new capital.
Innovation and regulation are rewriting the rules
That opening is widening quickly, as regulatory reforms are coinciding with a wave of product development that is expanding retail access. Evergreen structures, semi-liquid vehicles and private-market ETFs are gaining traction, while major asset managers are acquiring platforms and forming partnerships to expand distribution reach and strengthen their retail capabilities.
Against this backdrop, managers are leaning more heavily on structures designed for flexibility. The 60-percent increase in semi-liquid fund net assets since 2022 is a clear signal that the market is gravitating toward vehicles that balance private-market exposure with more accessible liquidity features — an approach that aligns with the expectations of retail investors entering the space.
Secondaries: the quiet engine behind retailization
Secondaries aren’t aimed at retail investors — but their resurgence is an important market force that could ultimately broaden the path into private markets. Nearly USD 100 billion in secondaries capital this year is putting much-needed liquidity back into the market, easing pressure on exits and improving pricing clarity. Those aren’t retail-specific benefits, but they help mitigate longstanding hurdles such as rigid lock-up periods, limited rebalancing opportunities and valuation uncertainty.
Retail isn’t institutional — and that changes everything
The rise of retail capital brings new growth opportunities but also signals a new operating reality. Retail investors have unique expectations around liquidity, transparency and communication. They generate higher volumes of transactions, require educational support and operate under tighter regulatory protection.
GPs are already navigating several core challenges as retail participation grows:
- Higher frequency liquidity requests
- More complex data management requirements
- Greater scrutiny around disclosures and reporting
- Stricter standards for KYC/AML and onboarding
These forces are transforming the day-to-day realities of running a fund — compressing timelines, multiplying documentation demands and forcing managers to communicate with more frequency, precision and transparency than ever before. The operational load is increasing, and legacy processes are struggling to keep up.
Digital infrastructure will drive the winners
The retailization of alternatives isn’t a passing trend — it’s a long-term market realignment. The GPs who thrive will be those who quickly embrace smarter workflows. AI-driven onboarding, automated KYC/AML, dynamic reporting tools and audit-ready data rooms aren’t nice-to-have upgrades anymore — they’re the foundation of a scalable retail strategy. Leveraging tools like FundCentre™, our end-to-end fund management platform, is a critical step toward supporting a broader investor base and staying ahead as retail inflows accelerate.
Dive deeper and download the full report
The shift toward retail participation is rapidly reshaping the alternatives landscape — influencing everything from fundraising dynamics to liquidity, operations and compliance. The Retailization of Alternative Investments explores the data behind these market-shaping forces, so you can prepare for what comes next.
Download the full report to unlock the trends redefining the future of private markets.