Key Takeaways
- • KPMG International's report "Private no more: The democratization of private markets" finds 69% of asset managers and distributors expect significant private markets expansion over the next three years, driven by demand from wealthy investors.
- • 53% of surveyed fund managers already offer multiple evergreen products at scale, and high-net-worth individuals remain the primary target, cited by 73% of organisations versus 33% targeting mass-affluent or retail investors.
- • Liquidity design and redemption management are the leading barrier, cited by 52% of respondents, with only 40% believing intermediaries understand liquidity tools during elevated redemptions.
- • Private equity and private credit are the most widely offered or planned asset classes at 62% each, though 74% say private credit underwriting standards have tightened over the past three years.
- • The US leads wealth-accessible private markets, with retail alternative AUM projected to rise from $1.9tn in 2022 to $6.9tn by 2030.
Summary
Asset managers and distributors expect private markets to expand significantly over the next three years, with 69% anticipating growth as demand from wealthy investors rises, according to a new report by KPMG International. The report, titled "Private no more: The democratization of private markets," is based on a survey of 100 fund managers and distributors across the Americas, Asia Pacific and EMEA. It found that 53% of fund managers already offer multiple evergreen products at scale, reflecting efforts to extend private market access beyond traditional institutional investors.
High-net-worth individuals remain the core target, with 73% of surveyed organisations focusing on this segment, compared with 33% targeting mass-affluent or retail investors. Regional differences are significant: just 12% of EMEA respondents target evergreen products at mass-affluent investors, versus 42% in the Americas and 45% in Asia Pacific. KPMG identifies the US as the most developed market for wealth-accessible private market products, with retail alternative assets under management projected to grow from $1.9tn in 2022 to $6.9tn by 2030.
Liquidity management is the principal obstacle. Some 52% of respondents cite liquidity design and redemption management as key barriers to launching or scaling evergreen funds, and only 40% believe intermediaries understand liquidity tools during periods of elevated redemptions. Operational strain is also evident: about 48% said implementation had taken longer than anticipated, and 41% believe the industry underestimates the cost and operational demands of servicing a larger investor base.
Private equity and private credit are the most widely offered or planned asset classes, each cited by 62% of respondents. Sentiment toward private credit is mixed: 65% hold a positive one-year outlook, but one-third of EMEA respondents expect a negative outlook for 2027. Notably, 74% said private credit underwriting standards had tightened over the past three years amid competition for assets and potential pressure on returns.
In the UK, KPMG sees long-term asset funds as a potential driver of broader participation, though technological and distribution challenges could constrain uptake. Naveen Sharma, head of private capital and asset management at KPMG UK, said the UK will follow a different trajectory from the US, shaped by its regulatory framework and investor demand, and that platforms must accommodate longer redemption notice periods and non-daily dealing. David Neuenhaus, global sector head of private capital and asset management at KPMG International, argued that firms must align distribution, technology and operations to capture demand rather than treating private markets growth solely as a product development opportunity.
High-net-worth individuals remain the core target, with 73% of surveyed organisations focusing on this segment, compared with 33% targeting mass-affluent or retail investors. Regional differences are significant: just 12% of EMEA respondents target evergreen products at mass-affluent investors, versus 42% in the Americas and 45% in Asia Pacific. KPMG identifies the US as the most developed market for wealth-accessible private market products, with retail alternative assets under management projected to grow from $1.9tn in 2022 to $6.9tn by 2030.
Liquidity management is the principal obstacle. Some 52% of respondents cite liquidity design and redemption management as key barriers to launching or scaling evergreen funds, and only 40% believe intermediaries understand liquidity tools during periods of elevated redemptions. Operational strain is also evident: about 48% said implementation had taken longer than anticipated, and 41% believe the industry underestimates the cost and operational demands of servicing a larger investor base.
Private equity and private credit are the most widely offered or planned asset classes, each cited by 62% of respondents. Sentiment toward private credit is mixed: 65% hold a positive one-year outlook, but one-third of EMEA respondents expect a negative outlook for 2027. Notably, 74% said private credit underwriting standards had tightened over the past three years amid competition for assets and potential pressure on returns.
In the UK, KPMG sees long-term asset funds as a potential driver of broader participation, though technological and distribution challenges could constrain uptake. Naveen Sharma, head of private capital and asset management at KPMG UK, said the UK will follow a different trajectory from the US, shaped by its regulatory framework and investor demand, and that platforms must accommodate longer redemption notice periods and non-daily dealing. David Neuenhaus, global sector head of private capital and asset management at KPMG International, argued that firms must align distribution, technology and operations to capture demand rather than treating private markets growth solely as a product development opportunity.
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