There's a "collision" of expanding private markets, and "democratization" of access for retail investors. This is a massive opportunity for the wealth management sector but it also holds considerable challenges. This article looks at the terrain.

The following article is from Domenic Ionadi, who is global head of sales at Confluence Technologies. He discusses private markets, the data challenges these traditionally illiquid assets present, and how technology can help in this regard – while not being a silver bullet. We are grateful to Ionadi for sharing these insights; the usual editorial disclaimers apply to views of guest writers. To comment, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Capital flows set the agenda in finance: where the money goes, so does the market. We are currently witnessing an unprecedented structural shift – an estimated $6 trillion to $10.5 trillion of "money in motion" over the next five years. While the volume is historic, the true story lies in the collision of two forces: the relentless expansion of private markets and the democratization of access for retail investors. This merger is creating a new frontier, but it is also exposing a massive gap between investor expectations and operational reality.

New investors, new expectations

Allocations are evolving rapidly. While institutional demand for private credit, infrastructure, and secondary strategies remains the bedrock of the market, the real disruptor is "retailization." Through fractional investing and tokenization, asset classes once reserved for sovereign funds are opening to the broader market. The scale of this shift is backed by significant industry data which suggests that the momentum is only accelerating. According to a 2025 State Street survey, 56 per cent of institutional investors believe that retail-style vehicles will account for at least half of all private market flows by as early as 2027. Deloitte further reinforces this trend, forecasting that US retail allocations to private capital could skyrocket from roughly $80 billion in 2024 to $2.4 trillion by 2030.

This democratization brings new challenges. The modern retail investor experience is built on an expectation of convenience and access. Retail investors expect a digital-first experience – mobile apps, self-service portals, and near-real-time transparency. They want the returns of private equity with the user experience of a robo-advisor or neobank, a seamless experience no matter how frontier the investment. They (quite correctly) believe a master’s in quantitative finance and a Bloomberg terminal shouldn’t be required to understand one’s portfolio.

The data and transparency gap

This creates a significant data challenge because private market data is non-standardized. As these worlds merge, there is a growing demand for analytics that can unify public and private exposures into a single, coherent view. Main Street investors want reports, even if most private asset investments are bespoke.

Asset owners are pushing hard for portfolio-level transparency that bridges the gap between a liquid stock and an illiquid infrastructure loan. The middle and back office now must create scalable, modular solutions designed for the complexity of private markets. Without these solutions, the industry risks a "transparency deficit" where retail investors take on risks without a full, standardized picture of their holdings.

Regulators respond to changes

When you start selling complex, illiquid assets to retail investors via digital apps, regulators pay attention. Regulators are deep in consultations and discussions about how they enhance or revise reporting requirements to align with the shifting demographics of who owns these assets.

While some US managers are welcoming a perceived reduction in regulatory intensity, the global picture is far more complicated. We are seeing a divergence that creates headaches for cross-border firms: the mood music in America is not becoming the default global tune. In Europe, for instance, firms are already preparing for the strict liquidity management and reporting standards arriving with AIFMD II in early 2026. 

Simultaneously, jurisdictions like Singapore are tightening the screws on fund custody and data verification.

Summary: The operational reality

As we move through 2026, the success of asset managers will be defined by their ability to bridge the gap between retail expectations and the "messiness" of private market data. Firms must now operationalize trust by meeting the strict, standardized demands of global regulators while maintaining the digital-first experience investors demand.

The opportunity is historic, but it requires a fundamental shift in how the industry handles transparency, liquidity, and cross-border compliance. For those who can master this complex landscape, the "retail revolution" offers a path to unprecedented growth.

About the author

Domenic Ionadi

As global head of sales, Domenic Ionadi drives revenue growth, client retention, and solution expansion across Confluence’s more than 1,000 client relationships worldwide. He leads a multi-regional team of sales and account-management professionals, shaping go-to-market strategy and deepening partnerships with asset managers, service providers, and other financial institutions. During his 20-plus years at Confluence, Ionadi has held senior roles spanning implementation, program management, and global account management. He began his career at SunGard Financial Networks, gaining hands-on expertise in reconciliation and post-trade data operations. Ionadi holds dual bachelor of science degrees in business administration and economics from Carnegie Mellon University.