Wealth advisers at major banks and independent brokerages collected more than $2bn in servicing fees since 2017 by directing individual investors into private market funds, according to an FT analysis of regulatory filings. Sixteen funds managed by Blackstone, Blue Owl, Apollo and KKR generated these fees for advisers at Morgan Stanley, UBS and Bank of America Merrill Lynch, even before accounting for lucrative upfront commissions.

Semi-liquid or "evergreen" vehicles, which allow investors to withdraw money at set intervals, surged in popularity over the past five years as a long bull market expanded the ranks of wealthy individuals seeking alternatives. These products proved equally attractive to private capital firms and wealth advisers as a source of predictable, lucrative fees.

Some of those funds have experienced net outflows in recent months, with investors seeking to withdraw more than €20bn from private credit vehicles in the first quarter amid concerns about asset valuations and underwriting standards. Banks told the FT their advisers are bound by fiduciary duty to steer clients to appropriate investments, though critics disputed this characterization.