A new report from Oliver Wyman suggests that technology, rather than a lack of education, is the primary factor limiting advisers’ ability to incorporate private market investments into client portfolios.
In its latest whitepaper, Scaling Private Markets Distribution in Wealth: Why Industrialised Distribution Rails, Not Product Innovation, Will Determine the Next Phase of Growth, the consultancy argues that improving the infrastructure supporting private market distribution will be key to expanding adviser adoption.
Magnus Burkl, Partner and Global Head of Capital Markets and Financial Infrastructure at Oliver Wyman, said advisers need better access to integrated technology and reliable data if private market investing is to become more mainstream.
He highlighted that many advisory firms face lengthy and complex processes when assessing whether private market investments are suitable for clients. In addition, advisers often struggle to access consistent information on available products, including details on evergreen funds, their investment strategies and historical performance.
Burkl believes the long-term objective should be to make investing in private market funds as straightforward and efficient as investing in traditional mutual funds, removing unnecessary operational barriers for advisers.