New Dynamics in the Private Wealth Sector
For several years, the integration of private wealth investors into the private markets ecosystem has been subject of intense discussion. While only few pioneers took initial steps in 2023 and 2024 and many market participants remained hesitant, the initially gradual evolution has now gained momentum: An increasing number of asset managers and private markets specialists are currently pivoting toward private wealth investors and many firms are making targeted investments in personnel expansion to strategically tap into the wealth market and attract private investors to alternative asset classes. The “democratization” of private markets has thus entered a new phase. What was long a theoretical debate is now being operationalized at scale, with a tangible impact across the investment landscape.
ELTIF 2.0 Reform
A key catalyst behind this shift is regulatory reform, particularly the ELTIF 2.0 revision, which came into effect in January 2024. The update to the existing EU regulation for European Long-Term Investment Funds (ELTIFs) significantly enhances retail investors’ access to alternative asset classes. ELTIF 2.0 now permits retail investors to invest in private equity, infrastructure, and other private market products without being subject to prohibitive minimum investment thresholds or a rigid suitability assessment.
In addition to lowering entry barriers, other notable improvements for retail investors include the removal of mandatory minimum holding periods, simplified investment processes, more flexible portfolio composition, and the possibility of profiting from fund of fund and semi-liquid fund structures. The former provide investors with greater flexibility in capital allocation; a key consideration for individual investors seeking to strike a balance between long-term growth and ongoing liquidity. Meanwhile, evergreen fund structures are increasingly favored for their ability to provide flexible durations and liquidity options, effectively addressing the needs of private wealth holders.
The Potential of the Private Wealth Market
These developments are particularly significant given the vast potential of the global private wealth sector. In 2023, global private wealth was valued at approximately USD 275.2 trillion, with projections suggesting it could reach approximately USD 367 trillion by 2028 (see below). Concurrently, analysts indicate that only around 2–3% of this wealth is allocated to private markets globally (S&P Global). With the lately enhanced access conditions and more adaptable structural offerings, this proportion is expected to increase substantially, both globally and regionally.
The Role of Established Players and Digital Platforms
As the relevance of the private wealth market grows, so does the demand for professionals capable of effectively unlocking this strategic sector. Many private equity firms in the DACH region have successfully positioned themselves with institutional limited partners (LPs) over the past decade. With the new potential in the private wealth segment, firms are intensifying their efforts to scale distribution strategies tailored to this distinct client segment. Currently, the competition for highly qualified talent who can facilitate access to the private wealth sector is among the most intense in the industry. Existing sales teams and structures are no longer sufficient— instead, specialized professionals are in high demand.
The private wealth market is predominantly accessed through established players, including asset managers, private banks, multi- and single-family offices, as well as asset allocators from retail banks, who act as trusted gatekeepers to affluent clients. Simultaneously, digital FinTech platforms are becoming increasingly significant. Acting as multipliers, they create new distribution channels and function as “influencers” to reach broader investor groups. Within this talent pool, the task extends beyond providing access: candidates must not only establish connections with wholesale investors and asset allocators but also possess the ability to function successfully within internationally oriented investment firms, build trust, and establish long-term relationships—essential skills beyond the necessary product knowledge.
Outlook and Implications
The year 2025 represents a crucial milestone for the private markets landscape, particularly regarding the continued expansion of the private wealth market. Companies that invest in specialized sales and product teams will gain a competitive edge in this rapidly evolving market and benefit in the long run. Success in this area will largely depend on the ability to attract the right talent—both in terms of expertise, culture, and interpersonal skills.
The shift in focus toward (U)HNWIs in the private markets sector thus presents a significant opportunity for both companies and professionals. Those who position themselves early and develop the necessary competencies will be well-placed to capitalize on this trend and take on a leading role in the evolving private markets landscape.
About the authors:
Britta Bene is a strategy consultant specialising in asset management. She founded Mainstay Human Capital Advisors in 2021, a human capital advisory firm specialising in private markets with a focus on the Northern European region. The portfolio of services includes finding specialised executives, advising and supporting companies in organising their human capital structures, as well as in the composition of advisory boards. Bene has also been a board member of the Bundesverband Alternative Investments e.V. (BAI) since 2020.
Cornelia Hess joined the Mainstay team as a strategy consultant in October 2021 and specialises in private markets mandates in the DACH region, which include investment and sales functions in the areas of private equity, venture capital, infrastructure, and private debt. In 2021, she joined the selection committee of Studienstiftung des Deutschen Volkes, Germany’s largest, oldest and most prestigious scholarship foundation. Since 2024, she has been serving as a certified executive coach with the EBS Business School.