Private-Market Boom Tests Advisors’ Due Diligence

Private equity and private credit, once largely reserved for institutions and wealthy clients, are reaching a broader audience through interval funds, ETFs and other semi-liquid vehicles. The shift promises greater portfolio diversification and access to assets outside public markets, but it also brings opaque valuations, wide differences in manager performance and liquidity constraints into everyday wealth management, increasing the research burden on financial advisors.

The Deloitte Center for Financial Services said in an April 24, 2025 report that U.S. retail holdings of private capital could surge from about $80 billion at the end of 2024 to $2.4 trillion by 2030, an increase exceeding $2 trillion. Advisors must scrutinize managers, valuations, fees and operations while ensuring clients understand lockups and redemption caps. Unlike traditional mutual funds, private-market vehicles may offer withdrawals only periodically and can restrict them during periods of stress.