From Morningstar: 2025-05-07 13:33:00

Private market capital is projected to grow 30% to $24 trillion in the next five years, with private capital currently estimated at $19 trillion globally. The convergence of public and private markets is a hot topic, with client interest in private products strong but liquidity lacking. State Street recently partnered with Apollo for a private credit ETF, highlighting challenges of liquidity and complexity in the market.

Neil Mehta of Apollo sees the convergence of public and private markets as the next industry transformation, forcing a rethink of what is safe and risky in investments. The industry is experiencing a product renaissance across funds, ETFs, LTAFs, and mutual funds, with a focus on client ease of experience in buying ETFs. Strategic asset allocation, implementation, and liquidity needs are key considerations in navigating the complexity of new investment vehicles.

Pascal Nguyen of BlackRock emphasizes the importance of educating clients on the long hold periods and performance implications of private investments. Vikram Bhandari of Schroders Capital Solutions notes that while there may not be a one-size-fits-all solution, the market has made significant progress in offering options to investors. The regulator has also made strides in adapting to the changing market landscape.



Read more at Morningstar: Morningstar Investment Conference UK 2025: Private…