The Client Alignment Challenge:
A $6.9 trillion Private Markets Advice Gap
Scaling Private Markets, Responsibly.
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Find Your Clients' Private Markets Comfort Zone
To seize the opportunity, you must:
Implement an advisory approach focused on client preference alignment.
Get clients hands-on so they can better understand the tradeoff between liquidity and return enhancement.
Recommend a private markets allocation that is aligned with each client's unique private investing preferences.
By The Numbers
Penetration (breadth): today only 9% of clients are invested in private markets, but 82% have some suitability for them in their portfolios.
Average allocation (depth): the current average portfolio share in private markets among those who hold them is 5%, while research shows that if you actually measured client's true preferences, the average allocation would be closer to 16.8%.
Closing both gaps: raising private markets ownership to align with revealed client preferences and capacity suggests an estimated $6.9T private markets opportunity.
Client Discovery and Engagement for Wealth Managers
Reveal each client's unique:
Willingness to lock up money for different time periods.
Sensitivity to variations in returns.
Overall preference for higher liquidity vs higher returns, and comfort with an allocation to private markets.
Portfolio Proposal Platform for Wealth and Asset Managers
Build Custom Public-Private Markets Portfolios:
Configurable to your unique investment views, capital market assumptions, and strategies.
Incorporate a wide range of private markets investments at the asset and sub-asset class levels.
Demonstrate frontier, stress test scenarios, and performance improvements with new asset allocations.
Industry Perspectives
"Private markets are no longer the exclusive domain of institutional investors, and Capital Preferences has correctly identified the need for an end-to-end digital experience that seamlessly integrates alts into the broader portfolio management workflow.
The firms best positioned to lead this evolution will be those who can become data creators, identify genuine end investor needs, and deploy intelligent engines to drive actionable outcomes."
Michael Roth - Chief Revenue Officer, Digital Wealth - InvestCloud
Industry Perspectives
“We are spending time and energy thinking through how we bring the benefits of private investing to the right clients in the right way. Capital Preferences is adding to our thinking in this regard."
Dan Stampf, CFP® - Chief Product Officer - Wealth Enhancement Group
Industry Perspectives
"Private markets are about clients. To make responsible change, we as an industry must put clients at the center of the private markets “revolution" and deploy tools and diagnostic frameworks to better understand an expanded investor base, nearly all Americans.
By doing so, we will grow adoption and create better outcomes because when clients feel understood and see their preferences respected, they are far more likely to trust, invest more over time, and even refer others."
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Bernard Del Rey - Founder and CEO - Capital Preferences
Industry Perspectives
"Private markets are no longer the exclusive domain of institutional investors, and Capital Preferences has correctly identified the need for an end-to-end digital experience that seamlessly integrates alts into the broader portfolio management workflow.
The firms best positioned to lead this evolution will be those who can become data creators, identify genuine end investor needs, and deploy intelligent engines to drive actionable outcomes."
Michael Roth - Chief Revenue Officer, Digital Wealth - InvestCloud
Industry Perspectives
“We are spending time and energy thinking through how we bring the benefits of private investing to the right clients in the right way. Capital Preferences is adding to our thinking in this regard."
Dan Stampf, CFP® - Chief Product Officer - Wealth Enhancement Group
The Client Alignment Challenge:
A $6.9 trillion Private Markets Advice Gap
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