Private markets are going public – just not through the stock exchange

For much of the past two decades, private markets have been defined as much by who could access them as by how they generate returns. Illiquidity, long-term horizons and complex structures made private equity, private credit and real assets the preserve of large institutions with patient capital and specialist expertise. 

That distinction is now eroding. Private markets are becoming more “public” – not in terms of asset ownership, but through a broader investor base with public‑market expectations around access, transparency and liquidity. Driven by the search for new sources of capital, asset managers are increasingly targeting private wealth channels through semi-liquid funds, evergreen structures, continuation vehicles and regulatory innovations such as the UK’s Long-Term Asset Fund (LTAF) and Europe’s revised ELTIF regime. At the same time, private banks and platforms are under pressure to offer differentiated access to private assets in a world where traditional public-market portfolios face structural challenges. 

The result is a quiet but profound shift: private markets are being sold to investors who think and behave very differently from the institutions they were originally designed for. 

Access expands, expectations change 

For investors, the appeal is clear. Private assets offer exposure to long-term growth themes, potential diversification benefits and, in some cases, more stable income profiles. For managers, private wealth represents a vast and relatively untapped pool of capital at a time when institutional allocations are approaching natural limits. However, with broader access comes a change in expectations – particularly around liquidity, transparency and valuation. 

Daily priced public funds have conditioned investors to expect frequent valuation updates and straightforward exit routes. Even where disclosures are clear, the behavioural shift that comes with more “public-like” access can create tension when private assets inevitably behave like private assets: valuations move infrequently, liquidity is conditional, and market stress can expose structural frictions. Recent market episodes have already demonstrated how quickly these issues can become reputational challenges if not carefully managed. 

The communications challenge behind the structures 

From a structuring perspective, the industry has been innovative. Redemption gates, notice periods and liquidity sleeves are now standard tools to balance investor flexibility with portfolio integrity. However, structural sophistication does not automatically translate into investor understanding. 

This is where the communications challenge becomes critical. For private market managers, success increasingly depends not just on investment performance but on how clearly they explain what investors are actually buying. This includes being explicit about liquidity mechanics, valuation methodology and the scenarios in which constraints may apply – not as legal disclosures buried in documentation, but as core elements of the investment story. In many cases, the risk is not that investors were misled, but that expectations were never fully aligned in the first place. 

Valuations under a brighter spotlight 

Valuation is another area where the move towards a broader investor base brings new pressures. Institutional investors are generally comfortable with appraisal-based valuations and smoothing effects over time. Less experienced private-market investors may be less so – particularly when public markets are volatile and headline comparisons are unavoidable. 

As private assets sit alongside public holdings in consolidated portfolios, differences in pricing frequency and methodology become more visible. Managers therefore face a delicate balance: maintaining valuation discipline while communicating clearly why private asset values do not move in lockstep with listed markets. Handled well, this can reinforce the long-term nature of private investing. Handled poorly, it risks undermining confidence at precisely the wrong moment in the cycle. 

A more public mindset for private assets 

None of this suggests that the democratisation of private markets is misguided. On the contrary, broadening access to long-term capital strategies is likely to be a defining trend of the next decade. However, it does mean that private-market firms must adopt a more “public” mindset in how they engage with investors – even as their assets remain fundamentally private. 

That involves anticipating questions before they arise, communicating downside scenarios as well as upside potential, and recognising that transparency is not a regulatory burden but a competitive advantage. In a world where information travels quickly and comparisons are easily made, credibility is built through clarity, not complexity. 

Looking ahead 

As private markets continue their gradual move into the mainstream, the firms that succeed will be those that treat communication as a strategic discipline rather than a compliance exercise. Structures will continue to evolve, but trust will remain the defining currency. Private markets may still be private by design, but they are no longer private in experience.