Private wealth firms are increasingly bypassing traditional fund platforms and intermediaries to gain direct access to private market investments for their high-net-worth clients. Rather than investing through commingled funds, many wealth managers are establishing their own institutional-style investment vehicles or negotiating direct relationships with private equity, private credit, infrastructure, and real estate managers. This approach gives firms greater control over investment selection, fee structures, and portfolio construction while allowing affluent investors to access opportunities that were once reserved primarily for large institutional investors.

The shift reflects the rapid growth of private wealth as a source of capital for alternative asset managers, particularly as institutional fundraising has become more competitive. By creating proprietary fund structures and expanding direct relationships with sponsors, wealth firms aim to differentiate themselves, improve access to sought-after private market investments, and better tailor portfolios to client objectives. The trend also underscores the continued convergence of institutional and private wealth investing as alternative assets become an increasingly important component of diversified portfolios.

Read the full article: “https://pitchbook.com/news/articles/private-wealth-funds-middleman-alternatives-exposure“