Doors open to private markets

However, the higher fees, reduced liquidity, and increasing retail focus of ETFs mean financial advisers should approach with caution. (Source: Investment News)

As stock market volatility continues to rise, both financial advisers and their clients are being reminded of the value of diversification—sparking renewed interest in private market opportunities.

Private equity, including private credit and venture capital, has long been the domain of institutional and high-net-worth investors. However, the landscape is beginning to shift, with efforts to broaden access and attract new capital from a wider investor base, especially as more companies seek funding beyond the public markets.

In a related trend, some asset managers are exploring ways to package private market exposure within exchange-traded fund (ETF) structures, aiming to offer more accessible entry points for retail investors.

Despite this growing interest, private equity fundraising has been under pressure. According to a recent report from Bain & Company, 2024 marked the third consecutive year of declines in private equity fundraising, with a 24% drop last year bringing total fundraising to 40% below its $1.8 trillion peak in 2021.

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