The financial landscape is evolving rapidly, and a significant trend is the retailization of hard assets infrastructure equity.

Traditionally, such investments were reserved for institutional investors and HNWIs. However, recent developments in private equity are opening up these opportunities to retail investors.

Recent moves underscore this shift

 – Apollo Global Management is simplifying products to target individual investors, planning to raise $150 billion over five years. This includes educational resources and tech solutions for all investor types.

 – State Street Global Advisors and Bridgewater Associates have formed an alliance to broaden access to alternative investments for a wider audience.

 – iCapital has expanded its model portfolio suite, providing exposure to fast-growing private companies and making PE investments more accessible to retail investors.

Adapting Talent and Communication

The shift from institutional to individual investors necessitates new skills in GPs:

 – Marketing and Fundraising: Need to resonate with individual investors through enhanced educational resources and simplified processes.

 – Portfolio Management and Operations: Must handle increased volume and diverse needs of retail investors.

 – Investor Relations: Focus on building trust and offering clear, comprehensive reporting.

GPs must ensure they clearly communicate the risks of direct investments in alternatives, moving beyond the assumed sophistication of institutional investors. This transformation requires adapting talent and strategies to succeed in a B2C environment.