Authored by Sarah Walter, Head of Asset and Wealth Management Relationships at Nicsa
Private markets continue to play an increasingly central role in asset and wealth management strategies, driven by investor demand for differentiated return streams, income, and diversification. Nicsa’s Private Markets Committee convenes senior leaders from across asset management, wealth platforms, distribution, technology, and professional services to examine how firms are navigating this evolving landscape.
Formerly known as the Alternative Investments Committee, the group formally updated its name in 2025, with 95% of members voting in favor of the change. The new name, private markets, is more aligned with current industry terminology and better reflects the committee’s focus on private equity, private credit, real assets, and related structures.
Over the course of the past year, committee discussions consistently centered on practical implementation challenges rather than theoretical opportunity. Here are the key themes that guided the committee’s work in 2025 and will inform its priorities in 2026.
Expanding Access—Without Ignoring Constraints
Private market investments are reaching a broader audience, particularly through interval funds, tender offer funds, non-traded BDCs, non-traded REITs, and emerging use cases within defined contribution plans. Committee discussions highlighted growing interest in these structures, alongside sober recognition of the trade-offs they introduce.
Members spent considerable time examining how liquidity provisions, redemption mechanics, and portfolio construction considerations affect both sponsors and end investors. While access is expanding, firms remain highly disciplined in balancing product demand with operational feasibility and investor experience.
Liquidity, Structure, and Portfolio Fit
Liquidity management emerged as one of the committee’s most consistent topics. Discussions explored how intermittent liquidity vehicles can be incorporated into model portfolios, how rebalancing and prorating challenges are addressed, and where friction may still exist across platforms and custodians.
Committee members also examined how different fund structures—registered and unregistered—shape distribution strategy, compliance obligations, and investor suitability. Rather than seeking one-size-fits-all solutions, conversations emphasized the importance of aligning structure, liquidity, and use case.
Regulatory Guardrails Continue to Shape Design
Regulatory considerations remained front and center, particularly as firms evaluate private market exposure within registered vehicles and retirement plans. Committee discussions revisited ’40 Act limitations, distinctions between registered and private fund structures, and evolving regulatory expectations around illiquidity, disclosure, and investor protection.
Members noted that regulatory clarity—or lack thereof—continues to influence product design decisions, especially for firms seeking to scale private market offerings responsibly.
Technology as Infrastructure, Not Hype
Technology discussions throughout the year focused on solving friction, not chasing novelty. Committee members explored how platforms are streamlining onboarding, subscription processing, reporting, and data management for private market investments.
Emerging technologies such as tokenization and distributed ledger solutions were pragmatically discussed with current priorities lying in standardization, operational efficiency, and compliance-ready workflows. Platforms that reduce complexity—rather than introduce it—were viewed as critical enablers of growth.
Education as a Growth Enabler
Across meetings, committee members consistently pointed to education as a gating factor for broader adoption. Advisors and investors continue to grapple with complex structures, terminology, liquidity features, and tax considerations.
Discussions highlighted the need for clearer, compliance-approved educational materials and practical resources to support advisors, operations teams, and compliance professionals alike. As private markets become more accessible, the committee underscored that education must keep pace.
Looking Ahead
As private markets continue to evolve, the committee expects many of these themes to remain top of mind in 2026—particularly liquidity management, regulatory alignment, and scalable distribution models. The committee’s shift from “alternatives” to “private markets” reflects not just a naming update, but a broader maturation of the category itself.
Nicsa thanks the members of the Private Markets Committee and its guest speakers for their thoughtful contributions throughout the year. Their insights continue to inform meaningful dialogue across the asset and wealth management community.
To learn more about Nicsa’s committees or to get involved, visit nicsa.org.
Observations contained in this work do not necessarily reflect the views of Nicsa or any member organization. Nothing herein is intended to be or should be construed as legal advice. Firms should consult their own counsel regarding legal or regulatory matters.
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