Data providers are improving transparency in private markets, but gaps in benchmarking remain

The private markets industry is undergoing a structural shift toward greater transparency as the investor base expands beyond traditional institutions to include retail participants through semi-liquid vehicles. According to Cerulli Associates' latest research, this democratization represents a "tectonic shift" that demands fundamentally stronger data infrastructure, clearer reporting standards, and more robust benchmarking capabilities. The growth of interval funds, tender offer funds, and eventually more liquid private market products is creating both opportunity and urgency for data providers and index operators to standardize practices and improve disclosure.

Financial advisors are driving much of this demand. Cerulli's research indicates that 39% of financial advisors now cite the need for greater transparency as a critical factor in expanding allocations to alternatives—underscoring that education alone no longer suffices for professional decision-making in private markets. As asset classes mature from niche offerings into mainstream vehicles, institutional and retail investors alike expect stronger benchmarking, more granular performance data, and comparable metrics aligned with public market standards.

However, significant gaps persist. Industry analysis from sources including LSEG, Preqin, Mercer, and Credit Benchmark reveals that private markets still suffer from inconsistent performance disclosures, limited comparable fund data, and fragmented reporting protocols. A key challenge identified across research is the "visibility gap"—particularly acute in private credit—where institutions struggle to access detailed GP-level data required to accurately measure risk, isolate alpha, and make informed allocation decisions. While index providers and benchmarking firms are focused on increasing transparency and developing higher-frequency data tools, the absence of uniform standards remains a structural constraint.

The competitive dynamics are accelerating consolidation. Data and benchmarking providers are forming strategic partnerships and positioning themselves for acquisition as firms seek to control information flows and define the standards that will shape private market investing over the next decade. For private market managers and alternative investors, offering granular, accessible data has shifted from a value-add to a competitive necessity, particularly as the investor base expands and regulatory scrutiny increases. Success will increasingly depend on infrastructure capable of handling growing complexity and scale while meeting heightened transparency expectations from advisors, institutional allocators, and retail participants.