The democratisation of private markets within the wealth management industry is further accelerating. This is now extending beyond opening new doors for investor access.
Private markets have undergone sustained growth in the past decade from less than USD5 trillion in global assets under management (AUM) in 2015 to approximately USD15 trillion 2025, according to Preqin data, and this is projected to continue rising by 10% per year to USD25 trillion by 2029.
The wealth management market has been a major driver of growth. A 2025 Morgan Stanley report said that individuals investors account for around one-fifth of AUM and the share is forecasted to increase to 37% with five years. Separately, a Hamilton Lane survey found that 86% of private wealth professionals plan to increase private market investments in 2026.
Increased investor access
Numerous banks are seeking to increase investor access with new private market offerings.
Earlier this month, Goldman Sachs created a new private markets platform for wealthy clients and family offices seeking direct stakes in private companies, rather than through private equity funds, according to an internal memo. In June, HSBC Private Bank rolled out HSBC Access, a new offering that provides eligible clients with opportunities to invest in select technology and startup companies served by HSBC Innovation Banking.
The trend of liberalizing investor access is not limited to high net worth individuals.
Last week, Goldman Sachs and T. Rowe Price partnered to launch a private markets fund aimed at providing retail investors with access to exposures typically limited to institutional investors. Morgan Stanley also expanded access with PMAX – Balanced – a newly registered fund that removes accredited investor requirement, lowers minimum investment amounts, and introduces daily subscriptions, to broaden accessibility for clients.
Enhanced data capabilities
Beyond investor access, wealth managers are also democratisation the asset class on the data front.
BlackRock’s portfolio management software, Aladdin, recently expanded its solutions to include reporting-grade indices and benchmarks to measure performance in private markets. Shortly after, UBS and MSCI announced a tie-up to advance private markets transparency, combining the Swiss bank’s alternatives expertise and client insights with the US index provider’s capabilities in independent data, analytics, and models.
Top risk: liquidity expectations and client trust
Despite the optimism, there are still risks ahead for the wealth segment. One particular area is liquidity risk, with fund gating increasingly appearing in headlines, especially with regards to the desire to withdraw from individual investors.
According to an EY report, the challenge for the wealth management industry is to scale private market offerings “without creating liquidity expectations that cannot be met in times of stress”.
“Semi-liquid structures are driving the growth of private market investments within wealth channels, creating a multi-trillion-dollar opportunity for wealth managers. But while these wrappers make it easier to invest in private markets, they do not make the underlying assets easier to exit especially during market stress. Managing liquidity expectations is critical to client satisfaction,” the consulting firm explained.
“As private markets democratise, liquidity will be transformed from a technical feature into a key driver of trust and client experiences. Failures of suitability or communication will damage reputation in the precise area where firms are hoping to build recurring revenues.”
