The potential for 'misselling' of complex alternative products by advisors who do not fully understand their liquidity profiles and risks.
Investors developing unrealistic expectations about liquidity in evergreen vehicles during periods of market stress.
Potential for return dilution across the industry as trillions of new dollars chase deals in private markets, though this is viewed as a distant concern.
Opportunities Identified
Capturing a share of the trillions of dollars expected to shift from traditional assets to alternatives within private wealth portfolios.
The growing opportunity set in private markets as more companies choose to stay private for longer.
Market consolidation, where a few large, well-branded firms with scalable platforms will capture the majority of capital flows.