Kirkland & Ellis partners Nicole Runyan, Brad Green and Jamie Hahn argue that private markets are gaining ground as the next rung on the investment ladder. They claim innovation in fund structures and sponsor partnership fuels this shift. The firm frames the debate around a simple split: institutional versus retail investors.

The discussion hinges on whether ‘retail’ investors include high‑net‑worth individuals or broader private‑wealth clients. Runyan stresses that a clean taxonomy helps asset managers tailor strategies. The firm’s view suggests that smarter structuring can unlock deeper capital flows into private‑market vehicles.

Private‑wealth clients, according to the partners, are increasingly seeking alternatives beyond public equities. The trend is driven by low yields on traditional fixed income and a desire for higher return volatility. Kirkland’s analysis points to a growing appetite for illiquid assets that offer both capital appreciation and tax efficiency for long‑term growth and portfolio managers.

For investors, the message is clear: reshaping private‑market participation could unlock new yield corridors and diversify risk profiles. Asset managers must adapt their product suites to meet this demand. In practice, firms that master fund‑structure nuances will capture a larger share of the expanding private‑wealth pipeline for returns in 2025 and beyond in the next