Retail Investors

In this deep dive, PEI examines how private equity is bolstering access to one of its most lucrative and fastest growing sources of LP capital

Carlyle Group’s partnership with distribution platforms iCapital and Allfunds this week is the latest example of firms wanting to tap the private wealth market.

As more PE firms look to institutionalise their business, part of their strategy is to increase allocations from new investor bases.

Retail investors want to be in alternatives for the same experience as institutional investors and should not be pushed on products, said Marc Lipschultz.

Firms pushing for democratisation in private markets need to ensure educating retail investors is a critical part of the journey, says the firm’s global head of alternatives.

With retail investing in alternatives still in its infancy, headwinds remain before the $179trn global pool of individual investor capital can be fully tapped.

Topics du jour included LP sentiment around today’s heady fundraising environment and frenetic dealmaking; the pervasiveness of continuation vehicles; and the democratisation of private markets.

Panellists at ALFI’s PE & RE Conference said increased regulation, financial literacy and the democratisation of PE are key long-term trends for the industry.

The alternatives giant's plans come as firms including Ares Management and Apollo Global Management make a concerted push into raising capital from wealthy individuals.

Fundraising, deals and exits as of the third quarter are at record levels, the alternatives giant reported on its latest earnings call.