Why Nimble Wins in Private Markets

This newsletter is part of The Assetizer, GenTwo's thought leadership platform.

As is well known, private markets are no longer a closed club. More investors can now access private equity, private credit, infrastructure, and other alternatives through new, more flexible vehicles. That creates a major opportunity for advisors who can help clients navigate these markets and adjust as conditions change. The walls between public and private investing are starting to come down. What used to be the preserve of institutions and the ultra‑wealthy is gradually becoming available to a much broader range of investors.

This seems like a major opportunity, and not just for large asset managers. Smaller advisory boutiques, family offices, and the like can, we think, profit from this shift if they play their cards right.

The Walls Are Coming Down

For years, investing has meant public markets. But public markets represent a relatively narrow slice of the real economy. The vast majority of the world’s wealth sits in assets that don’t trade on public markets. So it’s no wonder that investors have been increasingly demanding access to these markets, and that the industry has been responding by granting it.

A recent McKinsey report on the convergence of public and private markets shows that access to these investments is already cascading down the wealth ladder. First came the wealthiest clients through traditional funds that lock up capital for seven to ten years. Then came wealthy investors through newer structures offering some liquidity. Now everyday investors can access these markets through new vehicles.

That said, we are still at the beginning. Most clients with investable assets above a few million dollars still have little exposure to these markets right now. If you're an advisor who can offer this access, you're solving a real problem. You're helping clients invest in what they actually believe in, not just what happens to be listed on an exchange.

The risk is equally clear. If you can't offer it, someone else will. And they're not just other advisors—the firms managing these private investments are building their own ways to reach individual investors directly.

Why Private Markets Are Tricky

Here’s what makes this complicated: private markets aren’t one thing. They’re a collection of different investments—private companies, infrastructure projects, real estate, direct lending—and what’s attractive can shift quickly from one segment to another. Private equity might draw strong interest one year while infrastructure cools off. One sector of real estate might struggle while another thrives. What looked like a smart bet eighteen months ago can turn problematic as conditions change.

This creates real problems for investors stuck in rigid structures. A client who committed money to a fund in 2021 based on one set of market conditions might find themselves locked into something that no longer makes sense for their situation. They can't adjust. They can't reallocate. They wait.

We think this is exactly where nimble advisors can add real value. If you're close to these markets, you can see conditions changing and help clients respond. When one sector falls out of favor, you can shift. When liquidity terms that worked two years ago no longer fit client needs, you can redesign them. When a specific opportunity emerges that matches what a client believes in, you can structure access quickly.

It seems to us that the traditional model—pick a fund, lock up capital for a decade, hope it works out—is less suited to markets that change this quickly. The advisors who can build custom solutions and adjust as conditions shift have a meaningful edge.

What This Means

The convergence of public and private markets isn't just about products. It's about who gets to decide what gets built and how quickly they can respond to what clients actually need.

If McKinsey's right, the next five years will reshape where money sits and who manages it. Advisors who can offer integrated solutions—blending public and private investments in portfolios that reflect what clients believe and care about—will have a real competitive advantage. Those who can move quickly to design and adjust solutions around their clients’ goals will win. Those who wait passively for the next product to arrive on a platform will lose ground.

The barriers are coming down. The question is who has the agility to make it work.

All the best,
Tom

Sources:

• Asset management 2025: The great convergence | McKinsey