Strategies for Expanding Private Markets in Wealth Management

Family Offices Are Breaking Up with Wall Street—And Finding Better Deals Elsewhere The stock market has long been the go-to playground for investors, but for many Family Offices, the thrill is gone. Chasing quarterly earnings and riding out market swings has lost its appeal. Instead, they’re putting their capital to work in private markets, where they can call the shots, build meaningful partnerships, and capture returns that aren’t dictated by headlines. This shift isn’t just about returns—it’s about access, control, and long-term value. Rather than funneling money into traditional fund structures, many Family Offices are opting for direct investments, co-investments, and strategic partnerships. Whether in private equity, venture capital, real estate, or credit, they’re seeking opportunities that offer flexibility and upside without the constraints of public markets. Private credit is a prime example. With banks pulling back on lending, Family Offices have stepped in, offering businesses the capital they need on customized terms. The result? A win-win scenario where investors secure attractive yields while businesses gain funding without jumping through institutional hoops. Beyond financial returns, private markets provide an avenue for values-driven investing. Many Family Offices are backing companies that align with their long-term vision, whether in sustainability, innovation, or industry disruption. Unlike public market holdings, these investments allow for direct involvement and a real stake in shaping the future. Of course, navigating private markets requires patience and expertise. Without the liquidity of publicly traded assets, these deals demand thorough due diligence and a clear strategy. But for those willing to engage at this level, the rewards far outweigh the risks. With more Family Offices embracing this approach, private markets are no longer just an alternative—they’re becoming the main event. And as the lines between capital and influence continue to blur, one thing is clear: the smartest money isn’t following the market. It’s leading it.

𝗪𝗲𝗮𝗹𝘁𝗵 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗱𝗲𝗰𝗮𝗱𝗲 𝗮𝗿𝗲 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴. Not just in funds, but in flexible structures that let families think like founders and act like product creators. That’s why 𝗔𝗰𝘁𝗶𝘃𝗲𝗹𝘆 𝗠𝗮𝗻𝗮𝗴𝗲𝗱 𝗖𝗲𝗿𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗲𝘀 (𝗔𝗠𝗖𝘀) are gaining so much traction.  They give families the ability to move faster, stay in control, and build products that reflect their unique DNA. I had the pleasure of continuing a thoughtful dialogue with Philippe A. Naegeli at GenTwo, who’s been at the forefront of this transformation. Their platform is helping redefine how families structure investment strategies, giving them the tools to move with founder-style agility. Here’s why more families are embracing AMCs: 𝟭. 𝗙𝗮𝘀𝘁𝗲𝗿 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗺𝗮𝗿𝗸𝗲𝘁 Launch in 5–10 days, not months. Capture time-sensitive opportunities and turn conviction into product without losing momentum. 𝟮. 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 Families retain strategy and vision, while outsourcing the operational lift. White-labeled under their brand with daily NAV, ISIN, and global access. No fund license. No fund team. Just speed and simplicity. 𝟯. 𝗘𝗻𝗴𝗮𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 AMCs are becoming learning labs, used to co-build portfolios with next-gen, launch sibling-led strategies, and foster hands-on capital stewardship. 𝟰. 𝗖𝗿𝗼𝘀𝘀-𝗮𝘀𝘀𝗲𝘁 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 Public equities, venture, crypto, real estate, AMCs wrap multiple exposures into one bespoke structure. 𝟱. 𝗟𝗼𝘄𝗲𝗿 𝗰𝗼𝘀𝘁, 𝗵𝗶𝗴𝗵𝗲𝗿 𝗮𝗴𝗶𝗹𝗶𝘁𝘆 Leaner than funds. Easier to test themes. Built to iterate with the market. Family offices are already using AMCs to launch: • Direct venture sleeves • Impact strategies • Peer-driven private deal vehicles The big shift? Families are no longer waiting for traditional fund cycles. They’re becoming investment creators, agile, independent, and built for the future.

Institutional secondaries meet their retail moment. iCapital has invested in Tangible to create secondary market access for wealth management's private market allocations. 𝗪𝗵𝗮𝘁'𝘀 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴: Secondary markets exist for institutional players with $10M+ minimums. As they begin to scale in private markets, wealth management will need similarly deep liquidity solutions that work at advisor-scale transaction sizes. Tangible has built technology that handles what institutions do manually, but at wealth management scale. iCapital will now help them scale. 𝗧𝗵𝗲 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗯𝗿𝗲𝗮𝗸𝘁𝗵𝗿𝗼𝘂𝗴𝗵: • 𝘛𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯 𝘴𝘪𝘻𝘦 𝘧𝘭𝘦𝘹𝘪𝘣𝘪𝘭𝘪𝘵𝘺: $75K to $250M+ trades on the same platform • 𝘙𝘦𝘨𝘶𝘭𝘢𝘳 𝘢𝘶𝘤𝘵𝘪𝘰𝘯 𝘤𝘺𝘤𝘭𝘦𝘴: Liquidity becomes predictable, not opportunistic • 𝘞𝘦𝘢𝘭𝘵𝘩 𝘮𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵 𝘪𝘯𝘵𝘦𝘨𝘳𝘢𝘵𝘪𝘰𝘯: Built for advisor workflows, not institutional processes • 𝘋𝘪𝘨𝘪𝘵𝘢𝘭 𝘦𝘹𝘦𝘤𝘶𝘵𝘪𝘰𝘯: Technology handles what used to require manual institutional coordination 𝗪𝗵𝘆 𝗶𝘁 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: Private markets will never work at scale in the wealth channel until liquidity works at wealth-scale sizes. The missing piece wasn't access to private markets - it was 𝗮𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘅𝗶𝘁𝘀 for smaller investors. 𝗧𝗵𝗲 𝗯𝗶𝗴𝗴𝗲𝗿 𝗽𝗶𝗰𝘁𝘂𝗿𝗲: This makes private markets behave more like liquid alternatives for advisors. Clients can access sophisticated strategies without permanent capital lock-up. The market infrastructure is finally catching up to the distribution infrastructure. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The infrastructure of private markets is taking shape in real time. Follow me and The Private Markets Forum to keep up.

86% of wealth managers plan to increase alternatives infrastructure spending in 2026. Most are not ready for what that actually requires. The demand side is moving fast. BlackRock, Goldman Sachs, and State Street Global Advisors are packaging private equity, venture capital, and real estate for retail distribution. Minimums are falling. Retirement accounts are opening to alts. At leading wealth management firms, alternatives already represent 20% to 40% of total AUM. The democratization push is real. The operational side is not keeping pace. Every alternative fund position generates years of documents — capital calls, distribution notices, K-1s, quarterly statements. The technology wealth managers built for liquid securities was never designed for this. The result: one operations employee managing 200 to 250 positions manually, with quarterly close cycles stretching two to three months. A new generation of purpose-built platforms is closing the gap. Specialized independents like Canoe Intelligence, Arch and Alkymi are built exclusively for alternatives workflows. Platform-integrated solutions like Addepar and SS&C Accord embed alternatives capabilities within broader portfolio management ecosystems. AI-powered automation can lift per-employee capacity to 3,000+ positions and compress close cycles to 15 days. The math favors investment decisively. But technology is only part of the equation. Extending alternatives access to less sophisticated investors raises the suitability and fiduciary stakes — not lowers them. Product illiquidity, opaque fees, and complex reporting do not disappear when minimums drop. They intensify when the client base expands. The firms that will lead in alternatives are the ones that treat infrastructure and suitability as paired obligations — not afterthoughts. More in my latest post for Datos Insights: https://lnkd.in/gMknv2dj And for a deep dive on the vendor landscape, check out my colleague Wally Okby's Market Navigator report on Alternative Investment Document and Data Management Tools. #WealthManagement #AlternativeInvestments #WealthTech #PrivateMarkets #Fintech #OperationalExcellence #Fiduciary Datos Insights

Private wealth: $204 trillion. Institutional capital: $169 trillion. Most real estate GPs haven't noticed: Institutions aren't disappearing. But they are consolidating, slowing commitments, and narrowing GP rosters. Meanwhile, private wealth has become the fastest-growing pool of capital in the world. And it's still under-allocated to real assets. The implication is simple: the future of capital formation runs through RIAs and private wealth advisors. But the playbook is different. Here's how GPs can actually take advantage of the shift: 1/ Retail is now the dominant growth engine: • Private wealth already represents ~55% of global managed assets • Growing faster than institutional capital • At just 10% private markets allocation, it could generate $45T+ of new capital over the next 15 years Institutional capital is getting skinnier. Retail capital is getting fatter. 2/ RIAs are the real gatekeepers, not the end investors: • Most retail flows don't come directly from individuals • They come through RIAs, hybrid advisors, and independent broker-dealers • Fastest-growing, lowest-conflict distribution channels in wealth management If you're not building for the advisor, you're not really building for retail. 3/ Education is now a growth strategy, not marketing: • Advisors want alternatives • Lack of understanding is the #1 reason they don't allocate more • Complexity, suitability, and operational friction stop capital before it ever reaches ICs Winning GPs don't "sell" products. They train advisors on portfolio fit, liquidity, risk, and client outcomes. This is market development, not fundraising. 4/ Product design matters as much as performance: • Retail capital demands different wrappers • Evergreen vehicles, interval funds, better liquidity optics • Cleaner reporting and digital onboarding GPs who rely on manual processes and opaque data don't scale in the advisor channel. Operational excellence is now a distribution advantage. 5/ Brand + trust replace pedigree: • Advisors are overwhelmed with inbound pitches • What cuts through isn't IRR, it's clarity, consistency, and credibility • Institutional chops still matter, but only when translated into retail-friendly narratives and experiences Retail capital moves faster. But first, you need to earn their trust.

Large alternative managers have absorbed trillions in third-party AUM by acquiring specialist platforms across asset classes. They are evolving into multi-asset capital platforms, combining insurance, credit, real assets, and secondaries under one roof. In our latest analysis, we map out some of the key acquisitions by the largest players and the five key themes driving the consolidation. 𝟭. 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: Large asset managers are acquiring businesses to accelerate their global footprint, particularly across Europe and Asia. 👉 Some of the key deals include: EQT's Baring Private Equity Asia, KKR's MC-UBS Realty (Japan), CVC's DIF Capital, and Ares' SSG Capital. 𝟮. 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗰𝗿𝗲𝗱𝗶𝘁: Traditional private equity investors are going multi-asset and acquiring credit platforms to create massive scale. 👉 Some of the key deals include: BlackRock's HPS ($148bn AuM at acquisition), Brookfield's Oaktree ($120bn), TPG's Angelo Gordon ($73bn), and CVC's Marathon ($24bn). 𝟯. 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗳𝗹𝗼𝗮𝘁: Firms are acquiring insurance companies to secure long-duration, low-cost capital. 👉 Some of the key deals include: Apollo's Athene ($203bn) and KKR's Global Atlantic ($90bn) in addition to partnerships by other leaders. 𝟰. 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀: Secondaries have gained in prominence on the back of constrained liquidity, with the AUM in this strategy growing manyfold. 👉 Some of the key deals include: EQT's Coller Capital ($50bn) and Ares's Landmark Partners ($18.7bn). 𝟱. 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲: Infrastructure and real estate are becoming part of core asset allocation strategy for many investors. 👉 Some of the key deals include: BlackRock's Global Infrastructure Partners ($100bn AuM) and Ares' GCP International ($44bn). Follow more for more such Private Market & Investment Insights Nidhish Singh, FCCA, CISI, Dip-IFRS, M.IoD, PhD Scholar

Private credit is booming. It’s no longer a niche. It’s now essential for investors looking for higher yields and stability. Here’s why more capital is flowing into private credit—and where the opportunities lie: Regulations Are Driving Change Banks are lending less. Strict rules after 2008 made it harder for them to fund small businesses, real estate, and specialty loans. Private lenders stepped in. Now, private credit funds loans once dominated by banks. The Economic Landscape Favors Credit Interest rates are high. Private credit offers strong yields and a secure spot in the capital stack. Investors want predictable returns. Private credit delivers. Technology and Demographics Create New Needs - Remote workers are moving south, fueling housing loans in places like Southern Europe. - Aging populations drive demand for healthcare lending. - Tech sectors need financing for data centers and logistics hubs. These shifts open new doors for private credit. Big Opportunities in Private Credit Direct Lending - Direct loans to businesses are booming. - AUM will grow from $1.01 trillion to $1.74 trillion by 2029. Distressed Debt - Struggling companies mean opportunity. - Investors can expect returns of 13.36% by 2029. Real Estate Lending - With banks pulling back, private lenders are funding housing, tourism, and commercial projects. Sector-Specific Lending - Renewable energy, retail, and agriculture are ripe for investment. But There Are Challenges - Private credit isn’t as liquid as public markets. - Competition is growing. In Europe, navigating regulations and legal systems demands local expertise. Why It Matters Private credit is evolving. New fund structures make it accessible to more investors. Private wealth is flowing in, expanding the market. With clearer benchmarks and better practices, private credit is becoming a cornerstone of modern portfolios. For investors ready to dive in, the rewards can be substantial. #PrivateCredit #Investing #WealthManagement #Finance #DirectLending #RealEstateFinance #DistressedDebt #PrivateMarkets #InvestorInsights