Harnessing the tailwinds of private wealth growth
Private Wealth Session Takeaways
Throughout the afternoon on January 29th of IPEM Cannes | Wealth, both private banks and GPs spoke candidly on exploring new horizons as private markets become ever more accessible.
Evergreens, while a great innovation, need to be handled with care when it comes to marketing them. It was mentioned by several speakers that their own internal compliance teams resist using the term semi-liquid, and instead insist on using the term ‘semi-illiquid’. This is a wise approach as GPs begin to develop products for a broader, mass affluent investor base.
“Evergreens are not a trend they are a fundamental change for the market,” remarked Agathe Bubbe, Director – Wealth Solutions, Investor Relations at Eurazeo. “However, not all strategies are suited to these products, scalability is a necessity.”
Private banks are applying a laser focus to education, knowing this will be vital as the catalyst for change begins accelerating. GPs need to also be aware of the fact that educating investment advisors and their end clients is entirely different compared to an institutional investor base.
Claire Roborel de Climens, Global Head of Private & Alternative Investments at BNP Paribas Wealth Management, explained that going forward, she expects to see more gating to be activated in evergreens to protect investors, “and we absolutely need to explain that,” adding that “for us, it’s very important to partner with GPs who have the scale, who will be able to raise money with a very diversified investor base to manage the liquidity needs of evergreens.”
Gatings are part of product design. How they are used will differentiate good managers from those who are just chasing the hype.
To close the information gap, private banks like BNP Paribas have developed training models as part of the certification to become a private banker, as well as develop sessions with some of its GPs’ academies.
“The second step is to educate our clients,” said Roborel de Climens. “We do a lot of educational videos for the clients. We organise roadshows with GPs and with our CIO to explain the benefits of private assets in a financial portfolio.”
While there is a lot to explain, wealth platforms must also invest in the internal pipes, the operations… so that investors understand how to manage capital calls etc. Equally, if GPs want to scale in private wealth, they too need to have the internal tools and the right operational infrastructure in place to support the mutualization of private markets.
“Investors have to understand exactly what they are buying,” stressed Markus Pimpl, Co-Head Private Wealth Europe, Partners Group. “You need the team and the resources in place to do this. We trained 600 advisors last year in our headquarters.”
The ability to demonstrate liquidity management and manage volatility over cycles is an important consideration when partnering in private wealth. Distribution partners have to be assured that the GP has gone through tough periods with their closed-end funds. Until fairly recently, this has meant that the universe of GPs offering evergreens was fairly small; the big household multi-asset behemoths like the Apollos and KKRs of the world.
The universe of GPs is steadily expanding, however. Clients now want more specialization and something more bespoke and as Victor Mayer, Head of International Private Wealth at Pantheon remarked: “We are focusing on mid-market managers in private equity, private credit and infrastructure. Secondaries are an ideal way to access opportunities in the private equity space.”
Banks like Mediobanca couldn’t sit back and ignore the evergreen trend. When it comes to evaluating GPs, however, liquidity and deployment capabilities are key considerations. “We need to ensure we have a well diversified seed portfolio both in terms of investments and clients,” said Greta Teot, Head of Private Markets at Mediobanca.
When discussing some of the key challenges for evergreens, panelists told the audience that GPs need to understand the different types of distributors in Europe. Responding to questions and having local teams in place to liaise directly with distributors is important. Don’t underestimate the ability to put a face to a name. It’s key to those wishing to succeed in the private wealth segment.
Challenges linked to customisation and operational complexities were also noted. These complexities can create a burden on clients and distributors, requiring enhanced operational capabilities to navigate multi-subscription processes and varying redemption terms.
Performance risks (a good closed-ended fund doesn’t necessarily equate to a good evergreen fund), liquidity mismatches and the potential for mis-selling due to new and inexperienced GPs are additional challenges to be aware of.
Evergreens are not simple, vanilla savings accounts on steroids. They are inherently illiquid and investors need to be continually educated on the long-term, illiquid characteristics of the underlying assets.
When it comes to liquidity management, secondaries are an ideal cornerstone of any private wealth portfolio as a way to access private markets, and particularly private equity.
“We believe PE secondaries are ideally suited for core exposure to private markets. There’s no better risk/return profile in private markets, comparatively speaking, for the level of diversification and the low loss ratio that secondaries offer,” commented Boris Maeder, Managing Director and Head of International Private Wealth Distribution, Coller Capital.
Allianz Global Investors view secondaries as a good strategic asset allocation tool – good risk return profile, very diversified, quick distributions – but as Raluca Jochmann, Head of Private Markets Solutions said, “we also see them as a tactical tool, especially in the last couple of years with big discounts.”
“For 20 years I’ve been promoting closed-ended funds,” commented Edouard Boscher, Head of Private Equity, Carmignac. “But we realised we needed to develop evergreen products. If you really want to compare the performance of an evergreen against a closed-ended fund, you need to take into account the cash position that you will have to manage. Secondaries have a shorter investment duration. You receive cash very quickly which fits perfectly with an evergreen structure.”
Private Market Session Highlights
The afternoon session on private markets began with a discussion on the growing market for GP stakes. This is a market that is expected to grow from $530 billion to $749 billion by 2025. The reason for this trend, it was emphasized, is not because GP stakes are due to market consolidation. Rather, it’s about helping GPs scale and evolve their strategies.
Dominique Gaillard, Executive Chairman, Armen said that some of the main reasons why GPs engage with Armen were:
🟠 Succession planning – many GPs started in the 80s/90s and new generations struggle to finance ownership transitions.
🟠 Strategic expansion – out of 200 GPs who reached out to Armen, only 5% were satisfied with a single strategy, while most wanted to expand into 2-3 strategies.
🟠 Capital constraints – many LPs now require GPs to commit 2-3% of their own capital, which is difficult for mid-cap GPs managing €300-400M funds.
🟠 Financing consolidation funds – Some players require GPs to commit up to 10% of the fund, which many mid-cap GPs cannot afford.
“Most GP opportunities were previously 1:1 negotiations. Now, half of them involve M&A and boutiques as banks recognize the need for specialists,” commented Gaillard.
The discussion on scaling general partners (GPs) highlighted the increasing complexity of GP businesses. GPs have transitioned from mono-strategy firms to managing multiple vehicles, separately managed accounts (SMAs), and diverse structures. At the same time, LPs have become more sophisticated, demanding greater data transparency and digitization. Changing market conditions, such as higher interest rates and shifts in global capital allocations, are also prompting LPs to reconsider their liquidity and capital structures.
Frederic Pescatori, Managing Partner, Bridgepoint, emphasized that scaling a mid-cap firm into a multi-billion-dollar fund requires strategic alignment, strong leadership, and an evolving operational model that integrates new teams while maintaining agility. He stressed the importance of patience in due diligence and cultural alignment to ensure smooth scaling. A key takeaway from his perspective was that giving shares to team members can be a powerful tool for retention and motivation. “Having the ability to give shares is a powerful tool. Better to help teams cash out than drag them along,” he said.
As for the role of LPs in GP consolidation and the future of private markets, it was noted that LPs are actively driving consolidation by selling half of their GP portfolios while concentrating capital into fewer, stronger firms. This trend is shaping a dual-market structure where large platform GPs benefit from scale, but specialized GPs continue to thrive.
The rise of GP stake investments and market consolidation is a long-term shift, not a temporary trend. LPs are driving consolidation but still value specialized GPs, while at the same time, large asset managers are re-entering private equity to stay competitive in a shifting market.
Another area of continual evolution is the secondary market, which has grown significantly over the past 20 years, offering private investors a quicker and more efficient way to build diversified portfolios. As the market continues to mature, it is becoming more accessible.
Liquidity remains a key driver, as investors seek secondary opportunities to reallocate portfolios due to low distributions (DPI). It was noted by panelists that the industry is consolidating around fewer but larger investment opportunities, driving efficiency in capital deployment.
Investors now have multiple entry points into the secondary market, including Moonfare, Fidelity, and placement agents. Minimum investment thresholds have dropped significantly from $100K to $250K in traditional funds to as little as $25K in newer structures, explained Barry Miller, CEO of Ares Private Markets Fund.
“Today, you can gain access with as little as $25K… raise money on a monthly basis, offer liquidity on a quarterly basis, and provide tax benefits,” he said.
Semi-liquid structures, perpetual and open-ended funds, and lower qualification thresholds are broadening investor participation in secondary markets as well. While the secondary market is expected to grow from $150 billion to $165 billion in 2025, capital availability remains a key constraint. In Miller’s view, semi-liquid products will disrupt traditional large market funds over the next five to 10 years, taking market share due to their flexibility.
The key takeaway is that secondary market is that secondary market growth shows no signs of slowing down. New investment vehicles and lower minimums are making it easier for private investors to participate, while GP- and LP-led secondaries provide different risk-return trade-offs. However, capital constraints and evolving market dynamics will shape how the industry grows in the next decade.
Later in the afternoon, the conversation shifted focus to consider the value of sector specialisation versus broader, generalist strategies. Specialist GPs bring deep industry expertise, proprietary networks, and a refined approach to value creation, allowing them to uncover opportunities beyond traditional market competition. However, as Amy Jupe, Managing Director, External Investing Group at Goldman Sachs Alternatives questioned: “Is there such a thing as proprietary sourcing?” True proprietary deals are rare, and sector specialists must differentiate themselves by demonstrating unique sourcing capabilities and value creation beyond standard bidding processes.
Laurent Plantier, Managing Partner, Frenchfood Capital, explained that specialists should leverage off-market deal flow, industry knowledge, and CEO networks to maintain a competitive edge. Impact investing presents an opportunity for sector specialists, enabling them to quantify value beyond financial returns and appeal to LPs seeking both strong performance and measurable impact.
Plantier warned that without proper risk analysis, impact investments could lead to miscalculations. As sustainability and impact investing become more pervasive, specialists who can structure investments to maximise both financial and impact returns will maintain a strategic advantage.
During the discussion, it was pointed out by Igno van Waesberghe, Managing Partner, Aquiline Capital Partners that “Every specialist has their curse.” Over-specialization can become a limitation if it restricts deal flow or adaptability to market shifts. Jupe cautioned that if they are too niche, “GPs take longer to deploy funds than expected, or they stretch and go off strategy.”
Sector specialists excel in market insight, deal sourcing, and targeted value creation, but they need to maintain enough flexibility to adapt to changing conditions. Generalists benefit from broad market coverage but must avoid excessive concentration in a few key sectors. With the growing influence of technology and impact investing, both GPs and LPs should carefully assess risk, market size, and strategic adaptability when selecting investment approaches.