Private markets have quietly become the largest growth engine in global finance, now surpassing $13 trillion in assets under management (AUM)—yet most individual investors remain locked out.

For decades, these markets were the private domain of institutions and ultra-wealthy investors. But as technology, regulation, and investor appetite converge, that's changing fast.

We are witnessing the democratization of private capital—a structural transformation reshaping how people invest, how companies raise money, and how platforms like Capital Engine® are bridging the gap between Wall Street and Main Street.

From Exclusive to Accessible

Historically, private markets—covering private equity, venture capital, private credit, infrastructure, and real assets—were built around exclusivity. Investors needed seven-figure minimums, lengthy lock-ups, and direct relationships with fund managers. The result: vast opportunity, but limited access.

That wall is finally coming down.

Digital infrastructure, fractional investment vehicles, and streamlined compliance tools are enabling individuals to participate at smaller ticket sizes. Platforms like Capital Engine® are giving investors transparent access to private market offerings—complete with digital onboarding, e-signatures, KYC/AML automation, and ongoing reporting.

The next decade will see retail investors fueling as much as 20% of new private market capital. What was once institutional territory is rapidly becoming a diversified ecosystem driven by technology and trust.

Why Private Markets Are Growing Faster Than Public Markets

There are structural reasons behind this expansion:

• Companies Are Staying Private Longer: In 2000, over 7,000 companies were publicly listed in the U.S.; today, fewer than 4,000 remain. Venture and growth capital now sustain firms well past profitability before IPO.
• Return Potential: Private equity and credit have historically outperformed public indices, offering double-digit IRRs compared to 6–8% for public equities over the long run.
• Diversification: Private assets often move independently of public markets, offering a hedge against volatility and inflation.
• Innovation Cycle: From AI to clean energy, many transformative companies are being built—and staying—private. Accessing these opportunities early is becoming essential for diversified investors.

What's Driving the Retail Uptick

Several macro-trends are accelerating retail participation:

• Regulatory Evolution – Recent SEC changes are broadening definitions of accredited investors and allowing registered funds to hold more private assets.
• Technology Enablement – Platforms now offer digital onboarding, performance dashboards, and liquidity programs once impossible at scale.
• Wealth Transfer – An $84 trillion inter-generational hand-off is creating a new class of tech-savvy investors who value transparency and access.
• Yield Diversification – After a decade of low rates, investors are looking for higher returns outside traditional fixed income.

How Capital Engine® Fits In

Capital Engine® provides the infrastructure powering modern private markets—a digital bridge connecting issuers, investors, and intermediaries in a secure, compliant ecosystem.

Through its white-label technology, the platform supports:

• Primary market issuance (Reg D, Reg A+, Reg S)
• Secondary trading and liquidity for private securities
• Automated investor onboarding and accreditation
• Transparent dashboards and analytics for both issuers and investors

By combining fintech innovation with broker-dealer oversight (via Mallory Capital Group, a SEC-registered broker-dealer), Capital Engine® is helping firms raise capital more efficiently while empowering investors with access, liquidity, and confidence.

The Decade Ahead

The private markets story isn't just about growth—it's about inclusion. As investors seek diversification and higher returns, technology and regulation are converging to make private markets as accessible as public ones.

Those who embrace this transformation early—investors, fund managers, and advisors—stand to benefit from the most significant capital reallocation in modern finance.

Private markets are no longer a hidden corner of investing. They are becoming the new core of global portfolios.

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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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