Private Wealth - The Next $15 Trillion Alternatives Opportunity

Private markets are in the midst of explosive growth. Once limited to endowments and institutions, alternatives are now opening to private wealth — effectively doubling the addressable market for managers and redefining the investor landscape. 

Source: Preqin, Global Data, Bain Analysis (2023)

According to Bain & Company, upwards of 10-30% of institutional capital pools are allocated to alternative assets. In the case of endowments, early pioneers of private equity, this can be as high as 40-50%. These allocations are just 1-2% for private wealth¹.

What is the Key Driver of This Opportunity?

One major unlock of the private wealth market are 401(k) retirement savings. It's estimated that 401(k) plans hold $9.3 trillion of assets⁸. On August 7, 2025, President Donald Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(k) Investors,"⁹ which aims to make private market investments more accessible in defined contribution retirement plans. The order directs regulatory agencies to facilitate easier access to alternative investments like private equity, real estate, and cryptocurrencies for 401(k) account holders.

While this executive order is a strong first step in paving a path that opens access to private markets in the defined contribution marketplace, significant steps are needed from regulators and plan sponsors. One of the biggest hurdles for plan sponsors to offer private markets in retirement plans is the potential litigation risks. New “safe harbor” rules would provide legal protections against that litigation risk and accelerate these efforts.

How are Alternative Managers Accessing Private Wealth?

Getting at this prize is leading to creative strategies by alternative managers. Managers are opting for evergreen fund structures, a type of investment vehicle that allow investors to make long-term investments in private companies. 415 new funds were launched between 2017 and 2023². Evergreen fund AUM stands at ~$700 billion, or ~5% of overall private market AUM as of YE2024³. Unlike traditional private funds, evergreen funds have no fixed end (traditional private funds typically have ~10-year life), are more flexible with no lock-ups and periodic redemptions. Crucially, they have lower minimums opening them to a wider audience.

Alternative managers are also signing distribution/product partnerships with public managers. In the last year alone, four major partnerships have been announced:

• Capital Group with KKR⁴
• State Steet with Apollo⁵
• Blackrock with Partners Group⁶
• Wellington, Vanguard, and Blackstone⁷

Bottom Line

Taken together, this is a significant expansion of the total addressable market for alternative assets. Partners Group think this this growth channel is a major contributor to seeing private markets AUM hit 30-40 Trillion by 2033 – more than doubling in size¹⁰.

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