Unlocking Private Wealth For Private Equity

Around half of total global assets under management are held by individual investors, yet less than a fifth of this capital is allocated to alternative assets, according to Bain & Company's 2023 Global Private Equity Report. Private equity managers are hoping to change that.

Ropes & Gray partners Tom Alabaster, Eva Carman, Michael Doherty, Eve Ellis, Brynn Rail, Bob Rivollier and I examined – in this article– the market forces behind the push to "democratize" private equity (PE) and the focus of PE managers on raising more capital from individual investors and retirement plans.

Paving the road to individual investment in alternative assets

As the institutional market matures, investment from individuals will be crucial for sustaining the industry's upward trajectory. The world's largest alternative asset managers have signaled their determination to tap into this private wealth opportunity, and individual investors have strong appetite to build their exposure