How RIAs and wealth managers are preparing for retail demand in private markets.

The rise of retail investor demand for private markets is not just reshaping fund structures and platforms - it's also transforming the role of financial advisors and wealth managers. As high-net-worth and mass-affluent clients increasingly request access to private equity, private credit, and alternative real assets, Registered Investment Advisors (RIAs) and wealth managers must step up to bridge a crucial gap: education.

Why Advisors Matter in Retail Alternatives

Unlike institutions with full investment teams, most retail investors rely on advisors for guidance. But private markets are complex, opaque, and illiquid—making education and suitability critical. Advisors sit at the intersection of product access and investor trust, and their ability to explain alternatives is key to adoption.

• 78% of financial advisors report plans to increase client allocations to alternatives by 2030 (Cerulli Associates, 2025).
• 65% of advisors believe lack of investor understanding is the biggest barrier to wider adoption of alternatives.
• Advisors who integrate alts are seeing higher client retention and wallet share, particularly among next-gen investors seeking diversification.

The Education Gap

Retail clients are asking questions that go far beyond "what's the return?" Advisors must address:

• Liquidity: Explaining redemption schedules, secondary markets, and lock-up periods.
• Valuation: Helping clients understand quarterly NAVs vs. daily pricing in public funds.
• Fees: Breaking down performance fees, carried interest, and platform charges.
• Risks: Ensuring clients grasp default risk, concentration risk, and illiquidity.
• Diversification Benefits: Showing how private assets fit alongside equities, bonds, and cash.

Without clear education, advisors risk misaligned expectations—leading to dissatisfaction or regulatory issues.

Platforms as Education Partners

This is where technology platforms play a critical role. Platforms like Capital Engine® don't just enable access—they also embed education and compliance into the investor journey.

Key features include:

• Advisor Dashboards: Tools to manage multiple client accounts, track exposures, and monitor suitability in real time.
• Embedded Learning Modules: Short videos, risk profiles, and scenario models tailored for investors.
• Custom Reporting: Clear, digestible reporting on fund performance, liquidity, and portfolio breakdowns.
• Compliance Integration: Automated suitability checks and disclosures ensure advisors stay aligned with regulatory standards.

By combining access + education + compliance, platforms empower advisors to confidently bring alternatives into client portfolios.

Case Study: Advisors Leading with Alts

A mid-sized RIA firm recently began allocating 5–10% of client portfolios to private credit and real estate funds via a digital platform. The firm used:

• Quarterly webinars to walk clients through risks and benefits
• Model portfolios incorporating alts as a core allocation
• Capital Engine's dashboards to streamline reporting

The result? Increased engagement, deeper client trust, and inflows from referrals seeking similar access.

Advisor-Alts Workflow with Capital Engine®

Looking Ahead

By 2030, advisors who fail to integrate private markets risk being left behind. As younger, tech-savvy investors inherit trillions in wealth, their expectation will be holistic portfolios that include alternatives.RIAs and wealth managers who combine education, technology, and trust will define the future of retail investing.

Capital Engine® is here to support that evolution—providing the infrastructure and educational ecosystem to bridge the gap between advisor expertise and client demand.

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Up Next: The Future of Fund Distribution Is Digital. Digital-first platforms reduce friction, expand access, and scale investor reach. Fund managers embracing fintech are winning. If you missed any of the earlier issues, you can catch up at: Capitalengine.io/newsletter

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