For decades, private markets were defined by one unavoidable truth: once you were in, you were in for years.

Whether it was private equity, venture capital, real estate, or private credit, investors accepted long lock-up periods and limited visibility into when (or how) they'd ever be able to exit.

Illiquidity was the price of entry.

But in 2025, everything is changing. Private markets are undergoing a liquidity revolution, driven by digital technology, fractionalization, regulatory modernization, and new investor expectations. And the effects are profound: liquidity drives confidence, and confidence drives inflows.

Today's investors expect optionality. They want access—but they also want an exit strategy. Platforms like Capital Engine® are making that possible by embedding liquidity features directly into the private market ecosystem.

Private markets are no longer defined by what you can't do—they're being redefined by what you can.

The End of "Locked-In" Private Investing

Historically, illiquidity was the single biggest deterrent for retail and mass-affluent investors. Ten-year fund terms, capital calls, and no redemption options left many feeling boxed out of an entire asset class.

But now, new marketplace structures are offering flexibility that was once unthinkable:

Secondary Market Trading

Digital platforms enable investors to buy and sell private securities—much like public market shares, but within a compliant, controlled environment.

Scheduled Redemption Windows

Interval funds, evergreen funds, and private credit vehicles offer quarterly or semi-annual redemptions, giving investors predictable liquidity without sacrificing private market exposure.

Fractional Ownership

Breaking large private holdings into smaller tradable units means investors can rebalance or exit portions of their positions instead of all-or-nothing selling.

Tokenization & Smart Contracts

Blockchain-powered settlement ensures faster, audit-friendly transfers and real-time ownership updates.

Together, these innovations solve the number-one psychological barrier in private markets: fear of being stuck.

The Growth of Secondaries: A $300B Market in the Making

Liquidity isn't just a convenience—it's an economic engine.

According to industry estimates, global private asset secondary trading volume is on track to exceed $300 billion in 2025, driven largely by:

• Institutional fund rebalancing
• GP-led secondary transactions
• Demand from retail investors seeking earlier exit opportunities
• The rise of digital secondary marketplaces

Retail participation in secondaries has grown 4x since 2020, fueled by fintech platforms offering fractional liquidity, streamlined compliance, and transparent pricing.

As secondary liquidity becomes mainstream, private markets are beginning to behave more like sophisticated public markets—without sacrificing return potential.

Capital Engine® Is Building Mission Critical Infrastructure for Private Markets

Capital Engine® is helping to build the liquidity layer the alternative investing world has always needed—one that is compliant, transparent, and scalable.

Key Capabilities Include:

• Fractional trading infrastructure for private equity, credit, and real estate
• Digital matching engines connecting buyers and sellers in real time
• Integrated KYC/AML, suitability, and accreditation checks
• Custody and settlement integrations for seamless ownership transfers
• Redemption program management for interval and evergreen funds
• Investor dashboards showing redemption windows, pricing, and performance

This infrastructure allows fund managers, broker-dealers, and issuers to offer liquidity without compromising compliance—making private investments more accessible than ever.

Why Liquidity Matters for the Future of Private Markets

Liquidity doesn't just benefit investors—it benefits the entire ecosystem.

For Investors

• Reduced fear around long-term commitments
• Ability to rebalance private market exposure
• Transparent pricing and fair exits

For Issuers

• Enhanced demand during fundraising
• Improved investor satisfaction and retention
• Stronger brand reputation

For the Market

• Larger capital inflows
• More efficient price discovery
• A healthier, more dynamic secondary ecosystem

Liquidity is no longer a luxury—it's fast becoming an expectation.

The New Era of Liquid Alternatives

By 2030, private markets may operate with liquidity features that rival public markets—but with the return potential and diversification benefits that alternatives are known for.

The platforms building this future must balance innovation with compliance, efficiency with security, and investor empowerment with regulatory integrity.

Capital Engine® is leading the charge—bringing liquidity, transparency, and optionality to the private market world.

Private Markets This Month

The $590bn Californian investor betting big on private equity. Private equity is in the doldrums, with groups struggling to exit investments and raise fresh capital. But one of the world's biggest investors is doubling down on the sector. READ MORE

Private Market Talks: Charting the Future of Private Markets with Cambridge Associates' Andrea Auerbach. In this episode of Private Market Talks, Andrea Auerbach, Partner and Global Head of Private Investments at Cambridge Associates, joins us for an in-depth conversation on the evolution of private markets and what it takes to deliver returns in today's environment. READ MORE

Sentiment towards Europe's private markets rises. The astonishing growth figures come from BlackRock Asset Management, the world's largest asset manager which has been an aggressive acquisitor in the private markets space, recently adding Global Infrastructure Partners (GIP) and HPS Investment Partners, into its USD663 billion AUM. READ MORE

Capital Engine® Secures FINRA Approval of Mallory Capital Group Acquisition and Expands Broker-Dealer Services. Strategic acquisition reinforces Capital Engine's commitment to building a fully integrated capital markets infrastructure. READ MORE

Capital Engine® Series A. With a $650M+ pipeline, we are seeking up to $4M to scale and accelerate revenue growth through strategic partnerships, technological advancements, broker-dealer expansion, and enhanced sales and marketing capabilities. READ MORE

In the Engine Room Podcast

Up Next: Retail Capital Is the Next Institutional Wave. Institutional investors built private markets. Retail investors will scale them. With trillions in untapped wealth, the "mass-affluent" segment is ready to participate in private equity and credit through digital platforms. The future is retail-driven capital formation. If you missed any of the earlier issues, you can catch up at: Capitalengine.io/newsletter

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