Private assets: Global convergence and the next growth wave

Why private assets are reshaping global investment strategies

Global asset managers are rethinking strategies as private assets move centre stage. At our Autumn Private Assets event held in our PwC Dublin office, senior industry leaders examined the forces driving this shift — from the surge in private credit and infrastructure to the democratisation of alternatives and the race for technology and talent. Their insights reveal how Ireland can position itself at the heart of this transformation.

Private assets are no longer a side play; they are becoming the cornerstone of global investment strategies. Structural drivers such as the hunt for diversification, inflation-linked returns, and portfolio resilience are accelerating allocations to alternatives. Despite geopolitical fragmentation, one area of convergence stands out: the democratisation of private assets, with regulators and managers worldwide opening access to retail investors. With fundraising cycles tightening and fee pressure mounting, these shifts are redefining competitive advantage.

Democratisation unlocks new pools of capital

The democratisation of private assets is reshaping the investment landscape. Once reserved for institutional investors and ultra-high-net-worth individuals, access to alternatives is widening through new investment vehicles and regulatory reform. This convergence is striking given the broader backdrop of geopolitical fragmentation. While trade and industrial policies diverge, regulators and managers globally are aligned on expanding retail participation.

The opportunity is significant. Retail investment participation is significantly lower in Europe than in the US (17% versus 43%). Unlocking this idle capital could transform growth trajectories for asset managers. Yet challenges persist. Liquidity management, valuation transparency, and investor education are critical to building trust. Fund products continue to be sold, rather than being bought. A shift in mindset, supported by financial literacy training and upskilling, is needed to ensure retail investors understand the risks and rewards of semi-liquid strategies.

Ireland’s long history in the retail-focused ETF market, coupled with its tax certainty throughout the investment lifecycle and robust regulatory landscape, makes it an ideal destination to meet the demands of retail investors.

Technology and talent redefine asset management

Technology is transforming asset management — changing how investors interact, how trades are executed, how securities are held, and how contracts are settled. This disruption challenges traditional infrastructure and necessitates adaptation by industry players and regulators.

For firms navigating fee pressure and rising costs, technology isn’t optional — it’s existential. Technology is no longer a back-office enabler; it’s a core driver of value creation. Those who embrace AI and digital transformation will gain agility, improve transparency, and deliver the bespoke solutions investors increasingly demand. The winners will be those who innovate at pace while securing the talent to sustain it.

In recent years, conversations focused on cost efficiency. Today, 80% of managers expect AI to lift revenue, according to PwC’s Asset and Wealth Management Revolution 2025 report. Use cases range from automating tax reporting and portfolio analytics to enhancing investor relations for semi-liquid products.

However, innovation comes with challenges. Building AI capability requires significant investment and cultural change. Talent scarcity is a critical constraint, and managers must rethink hiring strategies, blending traditional financial expertise with data science and technology skills. Ireland is well-positioned to be a leading innovator in the global asset management industry by leveraging its status as a top fund domicile and a European hub for major technology companies. The convergence of these two sectors presents a unique opportunity for Ireland to capitalise on digital transformation and innovation.

Operating models shift toward agility and scale

Asset managers are reconfiguring operating models to stay competitive in a market defined by complexity and cost pressure. The traditional hub-and-spoke model — anchored in New York, London, and Hong Kong — is giving way to a decentralised approach. Talent and capital are now dispersed across regions, with centres of excellence emerging in Dublin, Luxembourg, Singapore, and Mumbai. This shift reflects two imperatives: proximity to new pools of capital and access to specialised skills.

Partnerships and alliances are also reshaping the landscape. Banks are collaborating with private credit managers, insurers are aligning with alternatives, and asset managers are forging ties with distributors to reach retail investors. These relationships are critical as distribution power concentrates among a smaller group of gatekeepers, making privileged access a determinant of scale.

For Ireland, decentralisation is an opportunity. Global managers increasingly view Ireland not just as a product domicile but as a centre for innovation and operational excellence for their asset management businesses. Ireland has firmly positioned itself as a premier location, driven by its access to the EU market, regulatory and tax landscape, and an extensive ecosystem of service providers.

Implications for business leaders

For asset managers, these trends demand decisive action. Here’s where to focus:

1. Embrace retailisation strategically
   Prepare for the surge in semi-liquid products and retail access. Align with evolving regulations such as ELTIF 2.0 and AIFMD reforms. Invest in investor education to build trust and transparency, ensuring retail clients understand liquidity, valuation, and risk. This shift requires robust governance and distributor oversight.
2. Double down on technology
   AI and digital tools are no longer optional; they’re essential for scale and resilience. Use AI for portfolio analytics, tax reporting, and investor servicing. Explore blockchain for operational efficiency and transparency. Technology adoption will differentiate leaders from laggards in a market facing fee pressure and rising costs.
3. Secure scarce talent
   Talent scarcity is a strategic constraint, particularly in AI and private assets. Inflation in tech roles is driving costs up. Blend financial expertise with data science and technology skills. Consider partnerships or outsourcing to access capabilities without inflating costs. Ireland’s tech ecosystem offers a competitive advantage.
4. Innovate product structures
   Investors demand flexibility and control. Evergreen funds, co-investment options, and bespoke strategies are gaining traction. Managers must design products that balance liquidity with yield, while meeting regulatory standards. Innovation in product design will be critical to attracting capital from retail channels and institutional investors seeking diversification.
5. Localise and collaborate
   Operating models are decentralising. Proximity to capital and talent matters. Forge alliances with distributors, banks, and insurers to access new pools of capital globally. Ireland’s position as a centre of excellence offers managers a platform for collaboration and innovation. Agility and partnerships will define success in this new era.

We’re here to help

Private assets are entering a new era defined by innovation, collaboration, and technology. Ireland’s unique strengths position it to lead this transformation. The question for asset managers is not whether to adapt, but how fast they can move.

Ireland is well-positioned as a leading hub for the future of private assets, thanks to its strong regulatory framework, favourable tax environment, and deep industry expertise. As the private assets market evolves, we are ready to support asset managers, AIFMs and servicers at every stage of their journey — from structuring and product implementation to regulatory compliance and growth strategies — helping you capitalise on Ireland’s advantages to achieve your business goals.

Contact us today to discuss these issues and discover how we can help position your business for growth.