Private Markets - Access, Innovation and New Pathways to Progress
Private Markets - Access, Innovation and New Pathways to Progress
Download the Citi GPS on Private Markets herePrivate markets are at a pivotal point in their evolution. As companies stay private for longer rather than list on public exchanges, a wider range of investors is showing interest in accessing unlisted companies.
For this Citi GPS, Citi Institute interviewed more than 80 participants in the private markets ecosystem, ranging from investment firms, institutional investors, and wealth managers to pension funds, venture capitalists, and fintech providers.
The aim is to provide a unique 360-degree view on the transformation of private markets, which have evolved from a niche investment class into an approximately $16 trillion industry over the past 25 years.
Key Takeaways
Evolving investor base: Private markets have grown into a $16 trillion industry, driven predominantly by institutional investors but individual investors, too, are seeking access via wealth managers, digital platforms and DC pension plans.
Integrated portfolios: The traditional divide between public and private markets is blurring. Investors are increasingly adopting a holistic, cross-public-private view for portfolio construction, driving demand for integrated solutions.
Liquidity conundrum: Private markets are known for their illiquidity premium, with the expectation of higher returns while assets are locked in for longer. At the same time, the new breed of investor is demanding greater liquidity. Products such as evergreen funds could provide a compromise.
Secondary market evolution: The secondary market is maturing, with both LP-led and GP-led transactions providing vital liquidity. It allows investors to manage portfolios and access capital more effectively, while GPs can hang on to valuable assets for longer.
Technology as a differentiator: Data, artificial intelligence (AI), and digitalization are critical in providing a competitive edge. AI is being applied across the investment lifecycle – from deal sourcing and due diligence to portfolio monitoring and client services – to improve efficiency and outcomes.
- Build or buy: As firms rethink their growth strategies, they can either buy or build new capabilities – or engage in strategic partnerships – to build out their private markets offering or bridge the gap between public and private market expertise.
| Item1 | Item2 | Item3 |
|---|---|---|
~$16tn The approximate |
~$650bn+ AUM in secondary |
68% Percentage of advisers |
Source: Pitchbook Data, Inc.3 | Source: Pitchbook Data, Inc.4 | Source: Blackstone Advisor Pulse – Summer 2025.5 |