WealthTech has helped provide greater access to the world of investing, enabling retail investors to build their own portfolios. However, now the public market investments have been made more attainable for the average person, is the same starting to happen in private markets?
FinTech Global recently spoke to Gianmatteo Guidetti, associate partner in the Asset Management line at Prometeia and Fredrik Davéus, CEO and co-founder of Kidbrooke, to get their thoughts on whether private markets are going through democratisation or if it’s just now a broader distribution to affluent investors.
Digital tools have allowed wealth firms to support more clients. Whether it is automated investing services that invest spare change by rounding up purchases, low-minimum portfolios or new AI-assisted portfolios that allow managers to distribute their time across more clients and still offer personalised services, these have made the public markets more accessible to investors across all wealth levels.
While this has opened public markets, the private space has largely remained restricted to institutional investors and UHNW individuals. However, now that public market investments have become more attainable for the average person, is the same starting to happen in private markets?
Prometeia’s Guidetti does not believe that is what is currently happening in the market. Instead, it is just a meaningful expansion of access to private markets, rather than being open to all. “I would describe it more as a transition from an institutional investor base towards private banking and affluent investors, rather than full democratisation.”
Technology, digital platforms and innovative fund structures have reduced many of the traditional barriers to entry, he noted, giving a greater number of investors the ability to gain exposure to private equity, private credit and real assets. However, they will still not be the primary asset for many people due to the length of the hold period. These markets require longer investment horizons, greater liquidity tolerances and deeper risk understanding.
Guidetti said, “In countries such as Italy, where household wealth is among the highest in Europe but is still heavily concentrated in bank deposits and real estate, there is a growing opportunity to channel savings into the real economy through private markets. However, adoption remains relatively limited even among wealthier investors.”
Recent data from Prometeia’s AMI platform suggests that even if the markets were made more widely available, adoption would still be slow. Its research found that private market funds represent just 1.3% of investable financial wealth held by Italian private banking clients. “If adoption is still relatively modest within the very segment that have the financial capacity and risk profile to access these investments, it would be difficult to argue that private markets have already been truly democratised.”
Davéus shared a similar sentiment, noting that the current trajectory is seeing a widening of the market to affluent investors. However, the regulatory direction is pointing to a future where private markets could be more democratised. Europe’s ELTIF 2.0 has removed the €10,000 minimum for retail investors and the US executive order to open defined contribution plans to alternatives is a structural shift.
He said, “In practice, though, the money flowing in today comes largely from mass-affluent and high-net-worth clients rather than the everyday investor. Describing that as democratisation flatters it. What we are really seeing is the frontier of access moving down by one tier, which is progress, though some way from genuine breadth.”
For true democratisation of private markets, these assets would be inside ordinary retirement and savings portfolios, sized and explained appropriately for the holder.
He added, “We are still at the beginning of that. Then we must not forget the indirect exposure to private markets, many e.g. in the Nordic markets already enjoy via the endowment guarantee-style products which are popular in those markets. In a way, access is thus already democratised where those exist.”
The issue of liquidity
While democratisation of private markets is still unlikely to happen soon, it raises the question of what would be the biggest barriers preventing everyday investors from getting involved. Both Davéus and Guidetti agreed that liquidity is the biggest hurdle.
Guidetti noted that most individual investors are accustomed to the ability to access their money relatively quickly if needed. Private markets, on the other hand, require capital to remain invested for many years, an idea that can make investors uncomfortable to commit to.
A solution to this is the semi-open, semi-liquid or evergreen fund structures that have gained popularity over recent years. These offer periodic liquidity windows and more flexibility than traditional closed-end vehicles. Interest in these structures is rising. A report from Preqin data found that over 120 evergreen funds were launched in 2025 and 30 were opened in the first two months of 2026. It attributes the rise in these strategies to meet demand, particularly from private wealth investors, with 37% having invested in an evergreen fund and an additional 24% exploring opportunities in the space.
Guidetti emphasised that while these solutions can widen access and make them more appealing to individual investors, it is important to note liquidity is not unlimited.
“These funds typically operate with predefined redemption limits, established ex ante, on the volume of withdrawals they can accommodate at any given time. Investors need to be fully aware of these mechanisms to avoid a mismatch between expectations and reality. The promise is enhanced liquidity, not daily liquidity.”
Both also alluded to other challenges, including complexity and transparency. Davéus noted that as these assets do not have a daily market price, it is difficult to fit them into tools people use to see and plan their finances.
He said, “Then there is cost, complexity and, underlying all of it, suitability. Working out how much illiquid exposure is appropriate for a particular person requires proper analysis of their whole financial situation. Most platforms are simply not set up to make that assessment at scale, and that, more than regulation, is what holds real access back.”
How to expand inclusion with protections
As access to private markets expands in the future, it will be important to ensure the greater inclusion does not come at the expense of protections.
Prometeia’s Guidetti believes the focus should not be on simply opening access but ensuring that this expansion is responsible and safe. “I believe the industry should focus on responsible inclusion rather than simply wider distribution. Expanding access to private markets is undoubtedly a positive development, but greater availability alone should not be confused with successful democratisation.”
To balance inclusion and investor protection, according to Guidetti, will require three things: product design, robust suitability processes and effective investor education.
The existing model for protecting retail investors was to keep them out altogether, Davéus noted. However, as access starts to be granted, protection will need to be built into the process. This will mean assessing whether an illiquid, long-locked investment suits the individual’s goals and needs and then being honest with them about what they are taking on.
Technology can also help here. Tools that can model someone’s entire financial picture and show how private assets impact their liquidity and outcomes will be a far better protection layer than a blanket rule, he stated. “Inclusion and protection sit comfortably together when the advice underneath them is rigorous. Again, I think the route of the Nordic endowment guarantee-style products are an interesting route here. Advice can happen at the product level and liquidity, and comprehension risks can be dealt with on the provider side.”
Regulations will play a core role in ensuring access is widened, but not at the risk of investors. While technology can power the access, via strengthened suitability assessments, enhanced transparency and educational content tailored to various investor profiles, regulation will help the space evolve with necessary safeguards.
Guidetti added, “Ultimately, sustainable growth in private markets will depend not just on making these investments available, but on ensuring they are accessible to the right investors and for the right reasons. In my view, successful democratisation is not measured by the number of investors who can buy a product, but by the number who can invest in it appropriately, with realistic expectations and a clear understanding of the opportunities and risks involved.”
Looking to the future
Whether private markets become completely democratised is still unclear, however, there are ways that the future could unfold. The question is, what would true democratisation of the space look like?
For Davéus, it will mean private assets being considered a normal, well-understood component of the average person’s portfolio, with allocations sized to their circumstances, priced fairly and integrated into the same view as the rest of their finances.
He said, “It means someone can understand what they hold, why they hold it and what it means for their goals, without having to be an expert. Reaching that point is as much an analytics and experience challenge as a regulatory one.
“Regulation is opening access. What is still missing is the infrastructure to assess suitability, model these assets alongside everything else a person owns and explain them in plain language. Build that, and democratisation becomes real rather than a marketing term. “
As for Guidetti, true democratisation would mean these assets are no longer reserved off for institutional investors and the ultra-wealthy. However, it would not just be a case of seeing lower minimum investment thresholds or making products more widely available.
He said, “A truly democratised private market ecosystem would combine accessibility, transparency, education and investor protection. Investors should be able to access private market opportunities through structures that are easy to understand, supported by clear reporting, transparent information on fees and performance and realistic communication about liquidity and risk.”
He concluded, “Ultimately, true democratisation is not achieved when everyone can invest in private markets. It is achieved when a much broader range of investors can participate with confidence, transparency, understanding and realistic expectations, while remaining adequately protected throughout their investment journey.”
Copyright © 2026 FinTech Global
