Private markets have certainly enjoyed a boom time for much of the past decade. While macroeconomic circumstances caused activity to slow in 2022, Pitchbook estimates that the asset class had garnered a total of more than $12 trillion in AUM by the end of last year. In the case of private equity, institutional investors have largely created the momentum. However, we expect individual investors to pick up the baton and drive significant growth. Untapped pools This investor segment is largely untapped. Individuals hold around half of all global wealth. According to Bain, of the approximate $275 trillion to $295 trillion global AUM, individual investors hold roughly 50%, but they account for only 16% of the total invested in alternatives funds. Favourable tailwinds Several trends are driving shifts in the accessibility of private markets. Private equity has produced historically superior returns compared to public equities, returning 14% globally over the past 25 years, compared to 7% for the MSCI World Index. The way forward We are at an exciting stage in the evolution of the industry and as retail capital gains more traction we expect it to become an important source of fundraising for alternative managers.