Wealth managers are increasingly acting as bespoke programme architects to provide tailored private markets propositions to their clients, according to a report from Bfinance.

The consultancy noted that many wealth managers were no longer passive participants in the evolution of private markets and were seeking to enter the asset class through prudent selection of a curated opportunity set.

Its report highlighted the importance of wealth managers understanding the difference between the democratisation and retailisation of private markets investment, stating that it was fundamental to their strategy.

Some firms were found to be adopting a bespoke portfolio approach, especially within advisory models targeting sophisticated or ultra high net worth individuals, with wealth managers increasingly recognising the investment benefits to their clients and the commercial benefits of unique propositions.

Bfinance highlighted that private markets were no longer out of reach for wealth managers, who were at different points of their private markets journey.

It noted that scale of assets under management was often not the deciding factor in the sophistication of private markets offerings, but it was the demand from underlying clients.

The report warned that greater access to private markets came with greater responsibility, and firms that conflate product availability with portfolio suitability risk undermining trust, performance outcomes, and long-term portfolio benefits.

“Democratisation improved access; retailisation enabled adoption,” report authors Bfinance senior director and head of Bfinance Access, Bradley Budd, and content lead, Oliver Wade, said.

“The next frontier is discernment—in selection, portfolio construction, and programme delivery.

“Private equity, private credit, infrastructure, and real assets are no longer positioned solely for institutional capital; they are becoming increasingly central to the propositions being offered to high net worth and mass affluent clients.”

According to Bfinance’s research, 52 per cent of wealth managers planned to increase their private market allocations further, while 38 per cent were now looking to increase their exposure to open-ended and semi-liquid private markets strategies.

Meanwhile, in the discretionary space, there was evidence of an increase in embedding evergreen funds into model portfolios, which Bfinance said marked a new phase of integration that could defined the next chapter.

The report noted that evergreen solutions offer opportunities and risk, as while evergreen and semi-liquid fund structures simplify access and enhance scalability, they introduce trade-offs around liquidity mismatch, performance opacity, and fee complexity that require careful consideration.

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