For decades, private markets were built, shaped, and scaled by institutional investors - pension funds, endowments, sovereign wealth funds, and insurance companies.

Their massive allocations turned private equity, private credit, real assets, and venture capital into the highest-performing segments of global finance.

But the next chapter of private market growth will not be driven by institutions alone.

It will be driven by retail investors.

With trillions in untapped wealth, new digital rails, and expanded regulatory pathways, the "mass-affluent" investor class is emerging as the most powerful new force in private markets. And the world's largest financial institutions have now validated this shift.

Wall Street Just Confirmed the Trend: Private Markets Are Going Mainstream

Over the past few weeks, three of the biggest names in global finance made landmark moves into private markets:

Morgan Stanley acquired EquityZen.

This move gives Morgan Stanley immediate entry into the pre-IPO and secondary private share market - an emerging asset class increasingly driven by retail demand.

Schwab acquired Forge Global for $660 million

Forge is the largest U.S. marketplace for trading private company shares. Schwab’s acquisition signals its belief that private secondaries will become a core product for everyday investors, not just institutions.

Goldman Sachs acquired Industry Ventures for up to $965 million

Industry Ventures is one of the world’s top funds specializing in secondaries and venture capital opportunities. Goldman’s investment signals that private market liquidity is now strategic for future growth.

Together, these moves send a single, unmistakable message: ? Private markets are going mainstream—and the next competitive frontier is retail.

Institutions built the foundations. Now they are preparing for the surge of retail capital that will scale these markets globally.

The Mass-Affluent: Trillions Ready to Deploy

The mass-affluent segment controls:

• $25 trillion in the U.S., and
• nearly $70 trillion globally

Yet historically, only a tiny fraction flowed into private markets due to high minimums, opaque processes, and limited liquidity options.

Today's retail investors want:

• Higher returns
• Alternatives to volatile public markets
• Access to private equity, private credit, and real assets
• Transparent digital platforms
• Liquidity pathways like secondaries and redemption windows

And now - thanks to technology - they can finally participate.

Retail Will Scale What Institutions Started

Institutions built private markets through large concentrated allocations. Retail capital will scale them through breadth, diversification, and global participation.

Retail brings three advantages institutions can't match:

• Breadth – millions of investors allocating across strategies
• Stability – recurring contributions and diversified flows
• Scalability – fractional access lowers the entry point dramatically

This is why nearly every major asset manager is launching "private wealth" divisions or retail-ready alternatives products.

The largest shift in capital markets in decades is underway—and this time, it's coming from the bottom up.

Capital Engine®: Infrastructure for the Retail-Driven Future

Capital Engine® is building the mission critical infrastructure needed to support this $65 trillion seismic shift.

Our tech stack enables:

• Digital investor onboarding (KYC / AML, accreditation, suitability)
• Primary issuance for Reg D, Reg A+, and Reg S international offerings
• Secondary liquidity through fractional secondaries & redemption features
• White-label marketplaces for broker-dealers, RIAs, and fund managers
• AI-powered matching between issuers and qualified investors
• Transparent dashboards showing NAV, performance, and liquidity windows
• Global regulatory workflows enabling cross-border participation

Retail capital cannot scale without strong, compliant, integrated infrastructure. Capital Engine® is that infrastructure.

The Future: Retail at the Center of Capital Formation

By 2030, analysts predict retail investors may contribute 20–30% of all new private market fundraising—a massive leap from the single-digit percentages seen a decade ago.

Institutions built private markets. Retail investors will scale them.

And technology like Capital Engine® enabling safe, compliant access will shape the next generation of global investing.

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In the Engine Room Podcast

Up Next: Impact Investing Meets Private Capital. Retail investors increasingly prioritize purpose. Impact funds in healthcare, sustainability, and inclusion are drawing record inflows. If you missed any of the earlier issues, you can catch up at: Capitalengine.io/newsletter

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