Read the full interview for Domenico’s insights, practical guidance, operational examples, and essential adviser-focused commentary.
Executive Summary
Private markets are gaining traction among HNW and UHNW investors.
Research trends show that allocations to private equity, private credit and infrastructure are increasing as investors seek diversification, long-term performance and perceived stability. According to MSCI, private equity delivered a 13% annualised return from 2000 to 2024, compared to 8% for public equities. While illiquid, private markets are seen by some as offering lower volatility – a key consideration in today’s uncertain environment.
Generational wealth transfer is influencing investment attitudes.
With over $106 trillion expected to pass from older generations to Gen X and millennials, advisers are seeing a shift in risk appetite and openness to alternative assets. Younger investors may be more comfortable with illiquidity and innovation – but suitability must always be assessed on a case-by-case basis.
Access to exclusive opportunities is a key driver.
Private markets offer exposure to companies and strategies not available through public markets. For example, 80% of US companies with revenues over $100 million are privately owned. This exclusivity is attractive to many HNW clients seeking differentiated opportunities.
Operational complexity requires specialist support.
Private market investments involve capital calls, long lock-up periods and delayed valuations. Missing a capital call can have serious consequences. Advisers should ensure clients have the right infrastructure and partners in place to manage these demands effectively.
Insurance-based solutions can enhance structuring.
When integrated into insurance-based wealth planning, complex assets can support long-term goals such as tax efficiency, estate planning and succession. Utmost Wealth Solutions provides custody and administration services to help advisers manage these assets within compliant, scalable frameworks.
Advisers and family offices play a central role.
Many are building expertise in private markets but still face challenges managing the operational side. Utmost Wealth Solutions work with advisers to handle the administration, allowing them to focus on due diligence, asset selection and client strategy.
Knowledge gaps still exist – especially around tax.
Some advisers may underestimate the tax or regulatory implications of certain structures, such as US limited partnerships. Working with providers who offer technical and compliance support is essential to avoid unintended consequences and ensure client outcomes are protected.