Private markets go mainstream: advisors shift from learning to leading as tech and evergreen funds redefine alternatives

The journey from education to strategic implementation in private markets has been foundational to advisor adoption, with education serving as the critical first step that transforms awareness into confident portfolio allocation. As Michael Sidgmore of Broadhaven Ventures emphasized in early 2026, industry-wide education initiatives have demystified private markets, enabling advisors to move beyond mere familiarity to actively integrating these assets with strategic intent. This evolution echoes Goldman Sachs’ Kristin Olson’s reflection on how, over the past 25-30 years, private markets—once niche 'special investments' for ultra-high-net-worth clients—have expanded through innovation to reach a broader investor base, signaling a maturation from education to purposeful implementation.

Addressing the persistent education gap has been pivotal in overcoming advisors’ misconceptions about the complexity and intimidation of private market investments. Mark Sutterlin of BofA Merrill highlighted that despite progress, many advisors still perceive private markets as daunting, but targeted efforts such as 'alts invitationals' and leveraging sponsor partnerships have simplified the narrative, emphasizing controls and clear benefits for end investors. This approach has shifted advisor education from explaining illiquidity and portfolio fit to fostering a disciplined, long-term allocation mindset, particularly among ultra-high-net-worth clients increasingly seeking diversification through alternatives.

Effective advisor education has evolved into a dynamic, ongoing dialogue that balances complexity with accessibility, tailored to diverse experience levels and client needs. Chelsea’s insights underscore the importance of listening to advisor pain points and providing adaptable, concise resources that respect the sophisticated nature of private market strategies without oversimplification. This shift from transactional education focused on limited asset classes to a strategic allocation framework mirrors the broader industry trend encouraging advisors to integrate private markets alongside public equities and fixed income, thoughtfully managing liquidity and risk as integral portfolio components.

By mid-2026, advisors have markedly transitioned from education to active implementation of alternatives, with Brookfield’s John Sweeney noting that conversations now center on how private markets can fulfill specific client objectives rather than just understanding what they are. This progression is supported by data showing that the proportion of North American advisors with 'deep alts knowledge' nearly doubled from 18% to 34% over two years, while 67% maintain a strategic asset allocation to alternatives. Furthermore, a distinct cadre of 'power users'—28% of U.S. advisors—demonstrate advanced expertise, integrating diversified alternative assets as core portfolio components and anticipating illiquidity premiums of 200 basis points or more, reflecting a sophisticated embrace of private markets as a strategic tool.

By mid-2026, the hybrid wholesaler model has become the dominant distribution approach in alternatives, with 54% of asset managers adopting a combined generalist and product specialist strategy, according to Cerulli Associates. This evolution responds to rising advisor demand for alternatives—particularly among high-net-worth clients—prompting firms to invest heavily in specialist hiring and tailored sales support. As Andrew Blake of Cerulli highlights, collaboration between generalists and specialists enhances client service and builds stronger advisor trust, addressing the critical challenge of advisor education cited by 75% of asset managers.

Merrill Lynch exemplifies advancements in advisor enablement by developing a diversified alternatives platform that spans wealth segments through both evergreen and drawdown fund structures. Mark Sutterlin emphasizes providing advisors with strategic asset allocation tools that accommodate nuanced product variations—such as differentiated private credit strategies—and facilitate portfolio construction across taxable and tax-exempt accounts. This tailored approach empowers advisors to deepen alternative allocations with sophistication, reflecting the growing complexity and investor interest in private markets.

Incorporating long-term thematic investment areas like AI, energy infrastructure, and evolving demographics into platform sourcing reflects Merrill’s forward-looking strategy to align with advisor and investor interests. Mark Sutterlin notes that growth in private markets assets will be driven equally by existing clients increasing allocations and new advisors entering the alternatives space, underscoring the importance of equipping advisors with the right tools to remain competitive, especially within the ultra-high-net-worth segment. Despite this momentum, Sutterlin points to significant 'white space' for further private market adoption, signaling ongoing opportunity for tailored advisor support and product innovation.

Cerulli’s research further recommends that asset managers leverage firm-level data on advisor portfolio construction—particularly given that 58% of advisors build portfolios primarily in-house, with independent and hybrid RIAs leading this trend—to refine product-specific and channel-specific coverage within hybrid wholesaler models. This data-driven customization enhances the effectiveness of specialist collaboration and advisor tools, enabling more precise support that aligns with diverse advisor workflows and client needs.

By early 2026, evergreen fund structures have surged to become the cornerstone of private market investing, capturing up to 80% of new alternative investment flows from Asian wealth managers, according to PGIM. This shift away from traditional ten-year lockups towards more flexible, perpetual vehicles reflects a global investor appetite for long-term, accessible private market exposure. Merrill’s alternative investments platform exemplifies this trend by offering a spectrum of evergreen perpetual funds tailored for mass affluent clients alongside drawdown and co-invest direct funds for ultra-high-net-worth individuals, illustrating how managers are adapting operationally and culturally to meet diverse investor needs.

The evolution of portfolio construction increasingly embraces a core-satellite strategy where evergreen funds serve as the stable core, complemented by tactical satellite allocations such as drawdown funds or specialized manager types. Mark Sutterlin of Merrill highlights that this approach not only simplifies access but also aligns with a disciplined, long-term allocation mindset favored by advisors across wealth segments. Published white papers and Merrill’s own platform design underscore the strategic integration of evergreen and drawdown structures to balance liquidity, risk, and return dynamics effectively.

Investor preferences within private markets are shifting notably towards infrastructure investments, driven by changing market dynamics and diversification goals. Merrill’s platform incorporates long-term thematic areas such as AI, energy infrastructure, and evolving demographics into its sourcing strategies, reflecting this trend. Meanwhile, a global advisor survey by Hamilton Lane reveals a sharp decline in enthusiasm for private credit—only 23% of advisors plan to increase allocations compared to 64% in late 2024—citing liquidity concerns and structural challenges, while 73% anticipate raising infrastructure allocations, signaling a broad rotation in alternative investment appetites.

By mid-2026, wealthtech innovations have revolutionized advisor workflows through centralized trading systems that embed all planning, processing, trading, and monitoring of alternative investments into a single technology portal. This integration not only streamlines operational efficiency but also mitigates compliance risks, enabling advisors and home offices to manage alternatives at scale with confidence. As highlighted in May 2026 analyses, the consolidation of these functions into unified platforms transforms the complexity of private market access into a seamless experience.

Advisor-traded sleeves within unified managed accounts (UMAs) have emerged as a pivotal enhancement, granting advisors granular control and customization over alternative investment strategies under a single registration. This innovation elevates UMAs by allowing tailored trading and execution on designated sleeve allocations, empowering advisors to fine-tune portfolios while maintaining regulatory compliance—a critical advancement noted in May 2026 wealthtech assessments.

In June 2026, Altruist’s launch of an alternatives marketplace marked a significant leap forward by integrating private equity, real estate, and infrastructure strategies from heavyweight asset managers such as Blackstone, KKR, and J.P. Morgan Asset Management. This platform not only consolidates documentation, reporting, and billing into one system—eliminating manual processes—but also introduces advanced trading features like margin lending and options trading. CEO Jason Wenk emphasized that these technology-driven enhancements equip advisors to compete effectively for clients seeking streamlined private market access and flexible investment strategies.

Beyond platform mechanics, technology is enhancing the private market investment experience by improving reporting, execution, and client engagement, as noted by BofA Merrill’s Mark Sutterlin in June 2026. Innovations such as evergreen funds simplify access to alternatives while maintaining the need for long-term investor discipline. Crucially, advisor education remains a cornerstone, helping clients grasp the illiquidity and portfolio fit of private investments, thereby supporting more strategic and informed implementation.

By mid-2026, Bank of America exemplified the imperative of modernizing operational infrastructure to sustain rapid growth in private market allocations, having doubled its alternatives assets in just three years amid client shifts from public equities. Mark Sutterlin highlighted the bank’s strategic focus on innovating core processes such as order entries, transfers, re-registration, and AML, emphasizing the need to build scalable internal systems that are not constrained by back-office limitations while remaining poised to leverage emerging technologies like distributed ledger technology at scale.

Custody infrastructure has evolved from a traditional back-office role into a pivotal strategic function that directly influences advisers’ capacity to scale alternatives and offer complex products. As of June 2026, industry analyses underscore that modern custody must provide integrated, data-driven ecosystems that unify workflows and minimize manual intervention, transforming operational complexity into a competitive edge essential for managing the intricacies of private market assets.

The next generation of alternatives custody demands real-time or near-real-time visibility into positions and activities, comprehensive lifecycle support from subscription through liquidity events, and unambiguous service accountability to meet escalating client expectations. This infrastructure upgrade is critical to align with the realities of modern portfolios, enabling firms not only to scale confidently but also to enhance the client experience, signaling a shift where the future of alternatives growth will be defined less by access and more by the robustness of custody and operational frameworks.

By mid-2026, evergreen fund structures have emerged as the dominant vehicle for channeling new alternative investment flows from Asian wealth managers, capturing between 70% and 80% of these allocations, according to PGIM executives. This trend signals a significant regional evolution as high-net-worth investors in Asia increasingly favor flexible, long-term investment vehicles over the traditional ten-year fund lockups, reflecting a broader shift in client demand towards adaptability and sustained engagement in private markets.