Morgan Stanley’s acquisition of EquityZen is one of the latest signals that Wall Street is doubling down on private markets. Despite periodic rebounds in public offerings, many high‑growth companies continue to delay traditional public listings. The trend has helped private markets expand dramatically, drawing institutional focus and prompting efforts to open up access for a broader set of investors.
But access to private markets alone is not enough. Expanding the investor base opens the door, yet the real test comes once investors step inside. As private companies stay private longer, platforms and new fund structures, like evergreen and semi-liquid vehicles, are emerging to provide flexibility and manage liquidity.
These innovations show that access is increasing, but they also underline a bigger challenge: investors need more than just entry; they need trusted data, transparency and confidence. Without consistent valuations and robust reporting, the promise of broader participation risks faltering, and scaling ambitions can stall.
Liquidity gains, clarity lags
There is a good reason why evergreen and semi-liquid funds are attracting attention. They promise flexibility which is something private markets have historically struggled with. Shorter commitment periods and periodic liquidity feel far more approachable than the traditional ten year fund model. Large US managers have already built significant businesses around perpetual capital, particularly through private wealth and insurance channels. Europe is following with new frameworks designed to remove barriers for the average investor, creating a clearer pathway for similar products to reach the market.
While these products address the liquidity challenge, they do not automatically solve transparency issues. Valuations are still updated infrequently, reporting cycles remain geared toward institutional investors and redemption mechanics can be complex. When information isn’t presented clearly, it becomes harder for investors to understand valuation processes or the timing of liquidity events.
The information gap
Retail investors tend to rely on advisers, distribution platforms and wealth managers to bridge this gap. As more private market products are offered, not all channels have deep experience with illiquid, structured assets. When valuations, liquidity timelines or fee structures are not clearly explained, expectations can drift, creating risks that fall under mis-selling scrutiny.
The gap between access and understanding is not just a technical issue; it is a credibility challenge. Surveys across the industry consistently show that investors increasingly expect more timely reporting, with transparent methodologies and comparable disclosures. However, expectations need to be balanced with how different markets operate. Public companies report financials quarterly, and most private equity firms already follow a similar rhythm, but the key difference is that public markets benefit from daily price signals, whereas private assets don’t have the same continuous data flow.
Infrastructure builds confidence
Bridging the divide requires stronger operational foundations. Integrated platforms that unify portfolio monitoring, accounting and investor reporting make it possible to produce consistent valuations, reduce errors and communicate updates to investors. Secondary market activity also helps establish reference points for pricing and liquidity, supporting more confident investment decisions.
For evergreen and semi-liquid structures, these improvements are critical. By pairing periodic liquidity with clearer, more consistent reporting, investors can track performance, understand redemption rules, and make decisions based on clear information rather than assumptions. These measures turn flexibility into genuine transparency rather than just a marketing feature.
Trust as a growth driver
Regulators are already focused on retail participation in private markets. In the UK, Consumer Duty rules and the SEC’s increasing attention to investor protection highlight the growing scrutiny around mis-selling. Firms that build transparent, scalable reporting systems now will not only manage investor expectations better but also reduce the risk of reputational or regulatory issues.
True democratisation of private markets requires more than open doors. It requires markets that are legible, understandable, and accountable. Access, liquidity, and transparency are inseparable: one without the others will fail to deliver sustainable growth or lasting investor confidence. By investing in robust infrastructure today, private markets can expand safely and meet the expectations of the next generation of retail investors.
